Showing 1 - 10 of 603
During the last 25 years, the stock market in the US has been strongly pro-cyclical in the presence of a counter-cyclical monetary policy. In this paper, we use an endogenous business cycle model to explore the factors contributing to a pro-cyclical stock market. A dynamic expectation structure...
Persistent link: https://www.econbiz.de/10011436478
This note considers Tobin's average Q in a framework where firms finance investment by equities and debt. The determination of its long-run equilibrium value Q° is based on positing equality of the loan rate and, adjusted for a risk premium, the return on equities. Q° can thus be characterized...
Persistent link: https://www.econbiz.de/10011376786
Persistent link: https://www.econbiz.de/10000998286
Persistent link: https://www.econbiz.de/10001745884
The American Post Keynesians - those who attach importance to the "Big P" and the absence of a dash between "post" and "Keynesian" - claim to be Keynes's most literal interpreters, or the "truest" Keynesians (HOLT ET AL., 1998, p. 17). This paper compares the Post Keynesian interpretation of the...
Persistent link: https://www.econbiz.de/10002202978
In this paper, we propose a new method to forecast macroeconomic variables that combines two existing approaches to mixed-frequency data in DSGE models. The first existing approach estimates the DSGE model in a quarterly frequency and uses higher frequency auxiliary data only for forecasting...
Persistent link: https://www.econbiz.de/10013465707
This paper aims to contribute to the debate of post-Keynesian growth models and Comparative Political Economy (CPE) by investigating the relationship between the changes in demand and growth regimes and the establishment of right-wing populist governments in Poland and Hungary after the Global...
Persistent link: https://www.econbiz.de/10013465932
We develop a two-sector New Keynesian model to analyze the inflationary effects of climate policies. Climate policies do not force a central bank to tolerate higher inflation, but may generate a tradeoff between the central bank's objectives for inflation and real activity. The presence and size...
Persistent link: https://www.econbiz.de/10013548986
Foreign price shocks have significant effects on functional income distribution and on inflation inequality. By increasing prices in domestic currency that are linked to foreign prices, they increase the profit share in some sectors and reduce real wages, in particular of workers whose...
Persistent link: https://www.econbiz.de/10013553408
We study the aggregate effects of sectoral productivity shocks in a multisectoral New Keynesian open-economy model that allows for asymmetric input-output linkages, both within and between countries, as well as for heterogeneity in sectoral Calvo-type price stickiness. Asymmetries in the...
Persistent link: https://www.econbiz.de/10014414343