Showing 41 - 50 of 320
The paper sets the neoclassical monetary business cycle model within endogenous growth, adds exchange credit shocks, and finds that money and credit shocks explain much of the velocity variation. The role of the shocks varies across sub-periods in an intuitive fashion. Endogenous growth is key...
Persistent link: https://www.econbiz.de/10010322477
The explanation of velocity in neoclassical monetary business cycle models relies on a goods productivity shocks to mimic the dataís procyclic velocity feature; money shocks are not important; and the Önancial sector plays no role. This paper sets the model within endogenous growth, adds...
Persistent link: https://www.econbiz.de/10010322765
The paper derives a Taylor condition as part of the agentís equilibrium behavior in an endogenous growth monetary economy. It shows the assumptions necessary to make it almost identical to the original Taylor rule, and that it can interchangably take a money supply growth rate form. From the...
Persistent link: https://www.econbiz.de/10010322784
The paper presents an endogenous growth economy with a representation of the tax rate system in the Baltic countries. Assuming that government spending is a given fraction of output, the paper shows how a flat tax system balanced between labor and corporate tax rates can be second best optimal....
Persistent link: https://www.econbiz.de/10010322797
The paper shows that contrary to conventional wisdom an endogenous growth economy with human capital and alternative payment mechanisms can robustly explain major facets of the long run inflation experience. A negative inflation-growth relation is explained, including a striking non-linearity...
Persistent link: https://www.econbiz.de/10010322821
The paper constructs credit shocks using data and the solution to a monetary business cycle model. The model extends the standard stochastic cash-in-advance economy by including the production of credit that serves as an alternative to money in exchange. Shocks to goods productivity, money, and...
Persistent link: https://www.econbiz.de/10010322823
The paper sets out a monetary business cycle model with three alternative exchange technologies, the cash-only, shopping time, and credit production models. The goods productivity and money shocks affect all three models, while the credit model has in addition a credit productivity shock. The...
Persistent link: https://www.econbiz.de/10010322826
The paper estimates the money demand in Croatia using monthly data from 1994 to 2002. A failure of the Fisher equation is found and adjustment to the standard money demand function is made to include the inflation rate as well as the nominal interest rate. In a two-equation cointegrated system,...
Persistent link: https://www.econbiz.de/10010322827
The paper presents an econometric accounting of the effective corporate tax rate in Australia for the years 1993 to 1996. The estimation is a panel of Australian firms that uses a specially gathered financial data base. Using fixed and random effects, the model specifies that the statutory tax...
Persistent link: https://www.econbiz.de/10010322831
The paper presents and tests a theory of the demand for money that is derived from a general equilibrium, endogenous growth economy, which in e§ect combines a special case of the shopping time exchange economy with the cash-in-advance framework. The model predicts that both higher ináation and...
Persistent link: https://www.econbiz.de/10010330139