Showing 872,271 - 872,280 of 876,337
This paper investigates the long-term impact of price-level targeting on social welfare in an overlapping generations model in which the young save for old age by investing in productive capital and indexed and nominal government bonds. A key feature of the model is that the extent of bond...
Persistent link: https://www.econbiz.de/10010288760
The paper presents a theory of the industrial transformation amongst sectors using endogenous growth theory. Allowing … time from agriculture to manufacturing and to services. Abstracting from international trade theory, sectors intensive in …
Persistent link: https://www.econbiz.de/10010288762
In the context of an autoregressive panel data model with fixed effect, we examine the relationship between consistent parameter estimation and consistent model selection. Consistency in parameter estimation is achieved by using the tansformation of the fixed effect proposed by Lancaster (2002)....
Persistent link: https://www.econbiz.de/10010288764
We present a search-and-matching model of the housing market where potential buyers' willingness to pay is private information and sellers may become desperate as they are unable to sell. A unique steady state equilibrium exists where desperate sellers offer sizeable price cuts and sell faster....
Persistent link: https://www.econbiz.de/10010288769
This paper argues that the cross-sectional approach to durations is essential to understand nominal rigidity because this captures the fact that price-spells are generated by firms' price-setting behavior. Since the distribution of durations is dominated by a proliferation of short contracts,...
Persistent link: https://www.econbiz.de/10010288777
The seminal Barro (2006) closed-economy model of the equity risk premium in the presence of extreme events (disasters) allowed for leverage in the form of risky corporate debt which defaulted only in states when the Government defaulted on its debt. The probability of default was therefore...
Persistent link: https://www.econbiz.de/10010288780
We show a simple way to introduce monopolistic competition in a general equilibrium model where prices are fully .exible, the velocity of money is variable and cash-in-advance (CIA) constraints occasionally bind.We establish the conditions under which money has real effects and demonstrate that...
Persistent link: https://www.econbiz.de/10010288784
A pervasive empirical finding for the US economy is that inflation is negatively correlated with the normalized market price of capital (Tobin's q) and growth. A dynamic stochastic general equilibrium model of endogenous growth is developed to explain these stylized facts. In this model, human...
Persistent link: https://www.econbiz.de/10010288787
Following Lancaster (2002), we propose a strategy to solve the incidental parameter problem. The method is demonstrated under a simple panel Poisson count model. We also extend the strategy to accomodate cases when information orthogonality is unavailable, such as the linear AR(p) panel model....
Persistent link: https://www.econbiz.de/10010288792
We examine a two country model of the EU and the US. Each has a small sector of the labour and product markets in which there is wage/price rigidity, but otherwise enjoys flexible wages and prices with a one quarter information lag. Using a VAR to represent the data, we find the model as a whole...
Persistent link: https://www.econbiz.de/10010288793