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Current accounts dynamics in OECD and EU acceding countries - an intertemporal approach

Bussière, Matthieu; Fratzscher, Marcel; Müller, Gernot J. - 2004

a closed form solution for consumption in the presence of habit persistence and liquidity constraints, which allows us …

Persistent link: https://www.econbiz.de/10011604357

Accounting for Forward Rates in Markets for Foreign Currency

Backus, David K.; Gregory, Allan W.; Telmer, Chris I. - 1990

We examine the behavior of forward and spot exchange rates from the perspective of the representative agent theory of asset pricing. We verify that with moderate risk aversion and time-additive preferences the theory accounts for very little (by our calculations, less than 5 percent) of the...

Persistent link: https://www.econbiz.de/10011940455

Behavioral multistate duration models. What should they look like?

Dagsvik, John K. - 2012

This paper discusses how specification of probabilistic models for multistate duration data generated by individual choices should be justified on a priori theoretical grounds. Preferences are assumed represented by random utilities, where utilities are viewed as random also to the agent...

Persistent link: https://www.econbiz.de/10011968458

Consumer behavior and the aspiration for conformity and consistency

Göbel, Markus; Schneider, Andrea; Thomas, Tobias - 2006

results in an equilibrium which deviates from the homo oeconomicus' behavior towards the consumption of the peer group …, whereas the aspiration for consistency leads to the result that the equilibrium consumption is not reached at once. Combining … these eects a new consumption path is derived. After a shock the individual consumption converges step-by-step to the new …

Persistent link: https://www.econbiz.de/10010263455

By Force of Confidence

Merella, Vincenzo; Satchell, Stephen - 2020

consumption risks and rare disasters. Only the volatility puzzles remain unresolved among the longer-established issues in this … literature. Motivated by empirical finance contributions and conventional wisdom, we abstract from a consumption-centric analysis … consumption growth. The resulting model compares favorably with the literature in explaining the risk-free rate volatility, but it …

Persistent link: https://www.econbiz.de/10014547853

History, Culture, and Trade: A Dynamic Gravity Approach

Campbell, Douglas L. - 2010

What determines trade patterns? Habit persistence in consumer tastes and learning-by-doing in production imply that history and culture matter. Deriving a dynamic gravity equation from a simple model, it is shown that cultural similarity is a product of history, so that trade patterns are a...

Persistent link: https://www.econbiz.de/10011496129