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News versus sunspot shocks in a New Keynesian model

Karnizova, Lilia - In: Economics: The Open-Access, Open-Assessment E-Journal 4 (2010) 2010-19, pp. 1-27

Separately, news and sunspot shocks have been shown empirically to be determinants of changes in expectations. This paper considers both of them together in a simple New Keynesian monetary business cycle model. A full set of rational expectations solutions is derived analytically. The analytical...

Persistent link: https://www.econbiz.de/10010300732

Instability and indeterminacy in a simple search and matching model

Krause, Michael; Lubik, Thomas A. - 2010

We demonstrate the possibility of indeterminacy and non-existence of equilibrium dynamics in a standard business cycle …

Persistent link: https://www.econbiz.de/10010303900

Determinacy of equilibrium under various Phillips curves

Ono, Yoshiyasu - 2008

Determinacy of equilibrium under the original, the backward-looking, the forward-looking and the hybrid Phillips curves is examined. If the monetary authority keeps the nominal money stock to be constant, the equilibrium path is always determinate under the original Phillips curve and the...

Persistent link: https://www.econbiz.de/10010332226

Local home environment externality is a source of indeterminacy

Kuwahara, Shiro; Yamada, Katsunori - 2008

source of indeterminacy. …

Persistent link: https://www.econbiz.de/10010332308

Endogenous indeterminacy and volatility of asset prices under ambiguity

Mandler, Michael - In: Theoretical Economics 8 (2013) 3, pp. 729-750

If agents are ambiguity-averse and can invest in productive assets, asset prices can robustly exhibit indeterminacy in … the markets that open after the productive investment has been launched. For indeterminacy to occur, the aggregate supply … systematically. That indeterminacy arises only at a knife-edge set of aggregate supplies allows for a simple explanation of the …

Persistent link: https://www.econbiz.de/10011599497

Openness and equilibrium determinacy under interest rate rules

De Fiore, Fiorella; Liu, Zheng - 2002

This paper shows that the conditions under which inflation-targeting interest rate rules lead to equilibrium uniqueness in a small open economy in general differ from those in a closed economy. As the monetary authority adjusts nominal interest rates in response to inflation, the real interest...

Persistent link: https://www.econbiz.de/10011604219

Indeterminacy of rational expectations equilibria in sequential financial markets

Donati, Paola - 2003

Persistent link: https://www.econbiz.de/10011604308

Indeterminacy and search theory

Giammarioli, Nicola - 2003

Persistent link: https://www.econbiz.de/10011604317

On the indeterminacy of determinacy and indeterminacy

Beyer, Andreas; Farmer, Roger E. A. - 2003

A number of authors have attempted to test whether the U.S. economy is in a determinate or an indeterminate equilibrium. We argue that to answer this question, one must impose a priori restrictions on lag length that cannot be tested. We provide examples of two economic models. Model 1 displays...

Persistent link: https://www.econbiz.de/10011604323

On the indeterminacy of new-Keynesian economics

Beyer, Andreas; Farmer, Roger E. A. - 2004

We study identiÞcation in a class of three-equation monetary models. We argue that these models are typically not identiÞed. For any given exactly identiÞed model, we provide an algorithm that generates a class of equivalent models that have the same reduced form. We use our algorithm to...

Persistent link: https://www.econbiz.de/10011604369