Was the Great Moderation in the United States due to good policy or good luck? Taking, as data generation process, a New Keynesian sticky-price model in which the only source of change is the move from a passive to an active monetary rule, we show how standard econometric methods, both...

We study a dynamic duopoly model of R\&D to analyze the impact of imperfect appropriability on market structure and welfare. We pursue this analysis by extending the Markov-Perfect dynamic industry model proposed by Ericson and Pakes (EP) (1995), through the introduction of a non-proprietary...

The assumption of perfectly rational representative agents is now commonly questioned. This paper explores the equilibrium properties of boundedly rational heterogeneous agents. We combine an adaptive learning process in a modified cobweb model within a Stackleberg framework. We assume that...

The paper deals with the efficient computation of general equilibrium models with a continuum of heterogenous agents. It compares an improved version of the Krusell-Smith algorithm to a backward-induction algorithm. The Krusell-Smith algorithm I use in the paper modifies the original algorithm...

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...