Paper approximates long run implications of different tax schedules, i.e. using Chebyshev collocation. Model argues in favor of flat taxes and operates within an Arrow - Debreu environment. We approximate steady state Euler equations of an infinitely-lived-representative-agent exogenous growth...

A number of authors have recently emphasized that the conventional model of unemployment dynamics due to Mortensen and Pissarides has difficulty accounting for the relatively volatile behavior of labor market activity over the business cycle. We address this issue by modifying the MP framework...

Our contribution aims to revisit the most famous Goodwin's models in macroeconomics by the light of set-valued analysis taking into account state and regulation constraints in a viability program. Goodwin 67 and Goodwin 90 models deal with dynamic interactions between employment and salary...

We study why fluctuations of the real exchange rate are so volatile with respect to other macroeconomic variables for latin american economies. We use a Bayesian approach to estimate a two-country New Keynesian Open Economy Macroeconomics using data for several latin american economies, and...

Past empirical research on monetary policy in open economies has found the “delayed overshootingâ€, the “forward discount†and the “exchange rate†puzzles. We revisit the effects of monetary policy on exchange rates by applying Uhlig's (2005) identification procedure...

The article examines the stability of the steady state in a perfect foresight model of technological change using perturbation methods. In the models of technological change analyses were generally restricted to find a steady state but they lack to test for its stability. Perturbation methods...

The authors structurally estimate and evaluate, for the U.S., the E.U., and Canada, various classes of recently-proposed Calvo-type models, using identification-robust methods. The models differ in their assumptions regarding price indexation (when firms cannot re-optimize their pices), in the...

Estimation of forward-looking interest rate rules is ubiquitous in the context of developed economy central banks. This paper considers the five countries in Latin America that have adopted the Inflation Targeting framework and performs estimations of forward-looking rules via i) standard...

Abstract: The robust permanent income model discussed in a number of works, see e.g. Hansen et al. (1999, 2002), is reformulated as a linear quadratic tracking problem with a time-varying intercept following a ‘Return to Normality’ model. The results in Tucci (2005), which...

This paper studies the cyclical properties the standard Mortensen-Pissarides model of labor search and matching embedded in the real business cycles model with capital, risk-averse agents, and lack of private insurance against unemployment risk. The model enables a direct comparison between the...