Showing 131 - 140 of 689
This paper studies the implications of labour taxation in determining the sensitivity of an economy to macroeconomic shocks. We construct a New Keynesian business cycle model with matching frictions of the labour market, where sluggish employment adjustment implies a key role for labour markets...
Persistent link: https://www.econbiz.de/10005207140
The study derives a theoretically and empirically founded procedure for volatility estimation and forecasting of daily financial return series for use in value-at-risk model frameworks. GARCH modelling is applied to account for time varying heteroskedastic conditional variances and covariances....
Persistent link: https://www.econbiz.de/10005207141
This paper demonstrates that the adaptive learning approach to modelling private sector expectations can be used as an equilibrium selection mechanism in a natural-rate monetary model with unemployment persistence. In particular, it is shown that only one of the two rational expectations...
Persistent link: https://www.econbiz.de/10005207142
Using recent advances in time-varying spectral methods, this research analyses the growth cycles of the core of the euro area in terms of frequency content and phasing of cycles. The methodology uses the con-tinuous wavelet transform (CWT) and also Hilbert wavelet pairs in the setting of a...
Persistent link: https://www.econbiz.de/10005207143
This paper contains a description of a small quarterly forecasting model for the Finnish economy. We evaluate the forecasting properties of the model by means of stochastic simulation involving both the endogenous and exogenous variables of the model. The simulations allow us to identify and...
Persistent link: https://www.econbiz.de/10005207144
Using an optimisation-based model with endogenous labour supply and a proportional tax rate, we compare the stabilising properties of different fiscal policy rules. The economy is affected by shocks from both government spending and technology. The fiscal policy rule can be based on government...
Persistent link: https://www.econbiz.de/10005207145
Nominal rigidities have an important role in macro models used for the analysis of monetary policy. Re-cently, attractive prices (also known as price points) have often been referred to as one important potential explanation of nominal rigidities. An increased interest on attractive prices as an...
Persistent link: https://www.econbiz.de/10005207146
We study the basic economic problem of choice between long-term and short-term commitments under a general characterization of uncertainty (aggregate uncertainty). When contingencies are contractible, a perfect market of Arrow-Debreau contingent claims implements the social optimum. When...
Persistent link: https://www.econbiz.de/10005207147
This paper contributes to the discussion on the measurement of banking sector output. It is also a prelude to discussion on possible causes of productivity change in banking. We demonstrate how the banking sector’s service production can be measured using aggregate financial statement and...
Persistent link: https://www.econbiz.de/10005207148
This paper examines the empirical performance of the New Keynesian Phillips curve and its hybrid specification in the euro area. Instead of imposing rational expectations, direct measures, ie OECD forecasts, are used as empirical proxies for economic agents´ inflation expectations. Real...
Persistent link: https://www.econbiz.de/10005207149