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Heterogeneous expectations, indeterminacy, and postwar US business cycles
Ilabaca, Francisco; Milani, Fabio - 2020
postwar US macroeconomic data can be explained as the outcome of passive monetary policy, indeterminacy, and sunspot … windows and allowing the parameters to fall both in the determinacy and indeterminacy regions. The estimates reveal large … the sample. The results confirm that macroeconomic data in the early windows are better explained by indeterminacy, while …
Persistent link: https://www.econbiz.de/10012200338
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Intra-industry trade, involuntary unemployment and macroeconomic stability
Le Riche, Antoine; Lloyd-Braga, Teresa; Modesto, Leonor - 2021
indeterminate. After opening the borders, the rigid wage country may export indeterminacy to the full employment country …, particularly if it is big enough. In contrast, when the full employment country is sufficiently big, local indeterminacy, and … fluctuations (associated with local indeterminacy and bifurcations) are possible with smaller externalities, whatever the relative …
Persistent link: https://www.econbiz.de/10012419065
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Expectational stability of resonant frequency sunspot equilibria
Evans, George W.; Honkapohja, Seppo - 2001
We consider the stability under adaptive learning of the complete set of solutions to the model when . In addition to the fundamentals solution, the literature describes both finite-state Markov sunspot solutions, satisfying a resonant frequency condition, and autoregressive solutions depending...
Persistent link: https://www.econbiz.de/10011398912
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Stable sunspot equilibria in a cash-in-advance economy
Evans, George W.; Honkapohja, Seppo; Marimon, Ramon - 2001
We develop a monetary model with flexible supply of labor, cash in advance constraints and government spending financed by seignorage. This model has two regimes. One regime is conventional with two steady states. The other regime has a unique steady state which can be determinate or...
Persistent link: https://www.econbiz.de/10011408407
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Determinacy with capital adjustment costs and sector-specific externalities
Herrendorf, Berthold; Valentinyi, Ákos - 2000
indeterminate and stable sunspots are possible. We find that capital adjustment costs of any size preclude stable sunspots for every … size are considered, a necessary condition for the existence of stable sunspots is an upward- sloping labor demand curve in … the standard result that when we abstract from capital adjustment costs, stable sunspots occur in the two-sector model for …
Persistent link: https://www.econbiz.de/10011545467
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Monetary policy and sentiment-driven fluctuations
Chan, Jenny - 2020
Persistent link: https://www.econbiz.de/10012501082
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Liquid equity and boom-bust dynamics
Buggenum, Hugo van - 2024
I develop and analyze a monetary model with liquid equity. Equity is a claim on the profits of firms acting as sellers in the search-and-matching market. Buyers in that market devote search to obtain matches with firms, and use the equity to relax a liquidity constraint. The dual nature of...
Persistent link: https://www.econbiz.de/10014633356
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Limited energy supply, sunspots, and monetary policy
Gornemann, Nils; Hildebrand, Sebastian; Küster, Keith - 2022
A common assumption in macroeconomics is that energy prices are determined in a world-wide, rather frictionless market. This no longer seems an adequate description for the situation that much of Europe currently faces. Rather, one reading is that shortages exist in the quantity of energy...
Persistent link: https://www.econbiz.de/10013493001
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What drives housing prices?
Kahn, James A. (contributor) - 2008
This paper develops a growth model with land, housing services, and other goods that is capable of explaining a substantial portion of the movements in housing prices over the past forty years. Under certainty, the model exhibits a balanced aggregate growth, but with underlying sectoral change....
Persistent link: https://www.econbiz.de/10003781770
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Productivity and US macroeconomic performance : interpreting the past and predicting the future with a two-sector real business cycle model
Ireland, Peter N. (contributor); Schuh, Scott (contributor) - 2006 - This version: April 2006
A two-sector real business cycle model, estimated with postwar U.S. data, identifies shocks to the levels and growth rates of total factor productivity in distinct consumption- and investmentgoods- producing technologies. This model attributes most of the productivity slowdown of the 1970s to...
Persistent link: https://www.econbiz.de/10003347261