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Monetary policy analysis: An undergraduate toolkit

Chadha, Jagjit S. - 2008

We develop simple diagrams that can be used by undergraduates to understand interest rate setting by policy-makers. We combine an inflation target, Fisher equation, policy reaction function and short and long run aggregate supply analysis to give a depiction of the policy problem. We illustrate...

Persistent link: https://www.econbiz.de/10010277864

Carbon capture and storage & the optimal path of the carbon tax

Lontzek, Thomas S.; Rickels, Wilfried - 2008

In the presence of rising carbon concentrations more attention should be given to the role of the oceans as a sink for atmospheric carbon. We do so by setting up a simple dynamic global carbon cycle model with two reservoirs containing atmosphere and two ocean layers. The net flux between these...

Persistent link: https://www.econbiz.de/10010277867

The optimal transfer of capital and embodied technologies to developing countries

Hübler, Michael; Lontzek, Thomas S. - 2009

We study the North-South diffusion of technologies embodied in internationally mobile capital in a framework of intertemporal global welfare maximization. Convergence of the growth rates of technical change in the North and South always occurs in the long-run. However, the degree to which the...

Persistent link: https://www.econbiz.de/10010277868

The effect of uncertainty on decision making about climate change mitigation: a numerical approach of stochastic control

Lontzek, Thomas S.; Narita, Daiju - 2009

We apply standardized numerical techniques of stochastic optimization (Judd [1998]) to the climate change issue. The model captures the feature that the effects of uncertainty are different with different levels of agent's risk aversion. A major finding is that the effects of stochasticity...

Persistent link: https://www.econbiz.de/10010277869

The global credit boom: Challenges for macroeconomics and policy

Hume, Michael; Sentance, Andrew - 2009

economic theory and argue that, while the 'global savings glut' may account for the cycle's initial phase, other factors such …

Persistent link: https://www.econbiz.de/10010277874

Robust consumption decisions under ambiguity for regime switching mean returns

Liu, Hening - 2009

This paper examines a continuous-time intertemporal consumption and portfolio choice problem for an investor with Du e and Epstein (1992a)'s recursive preferences who worries about model misspecification (model uncertainty) and wants to seek robust decision rules. The expected excess return of a...

Persistent link: https://www.econbiz.de/10010277911

Licensing technology and foreclosure in contests

Clark, Derek; Foros, Øystein; Sand, Jan Yngve - 2008

We consider an industry where one firm with a superior technology competes for market shares with several rivals. The owner of the superior technology (the dominant firm) can license or transfer the source of its dominance to a subset of rivals. Allowing the non-license takers to remain active...

Persistent link: https://www.econbiz.de/10010277915

Extreme value theory as a theoretical background for power law behavior

Alfarano, Simone; Lux, Thomas - 2010

theory, which provide a statistical justification for the emergence of power laws as limiting behavior for extreme … fluctuations. The remarkable generality of the theory allows to abstract from the details of the system under investigation, and … therefore allows its application in many diverse fields. Moreover, this theory offers new powerful techniques for the estimation …

Persistent link: https://www.econbiz.de/10010277948

They are even larger! More (on) puzzling labor market volatilities

Gartner, Hermann; Merkl, Christian; Rothe, Thomas - 2009

This paper shows that the German labor market is more volatile than the US labor market. Specifically, the volatility of the cyclical component of several labor market variables (e.g., the job-finding rate, labor market tightness, and job vacancies) divided by the volatility of labor...

Persistent link: https://www.econbiz.de/10010277952

The inflation-output tradeoff: which type of labor market rigidity is to be blamed?

Merkl, Christian - 2009

In the standard New Keynesian sticky price model the central bank faces no contradiction between the stabilization of inflation and the stabilization of the welfare relevant output gap after a productivity shock hits the economy. When the standard model is enhanced by real wage rigidities or...

Persistent link: https://www.econbiz.de/10010277953