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This paper constructs a simple dynamic asset-pricing model where asset prices are influenced by investors? self-fulfilling prophecies. A class of solution processes is analysed, that jointly reproduces two major financial anomalies, namely, the excess volatility of asset prices and the...
Persistent link: https://www.econbiz.de/10008679993
-based (classical or Bayesian) empirical investigation of determinacy/indeterminacy in stationary LRE models and are particular useful …
Persistent link: https://www.econbiz.de/10008862672
image segmentation. A new operation, α-mean operation, is proposed to reduce the set indeterminacy. An improved fuzzy c …
Persistent link: https://www.econbiz.de/10008862810
. Unlike mathematical epidemiological models, economic epidemiological models can produce regions of indeterminacy or …
Persistent link: https://www.econbiz.de/10008866134
We provide a methodology to study the role of market distortions on the emergence of indeterminacy and bifurcations … classes of distortions responsible for indeterminacy. Our methodolgy consists in introducing general specifications for the … distortions influence the range of values for the elasticity of inputs substitution under which local indeterminacy and …
Persistent link: https://www.econbiz.de/10008869307
that by allowing free capital mobility, indeterminacy is exported to the world economy. If further liberalization is … permitted, by allowing free movements of labor, the scope for indeterminacy is reduced and open labor markets may produce a …
Persistent link: https://www.econbiz.de/10008871032
Countercyclical markups are a key transmission mechanism in many endogenous business cycle models. Yet, recent findings suggest that aggregate markups in the US are procyclical. The current model adresses this issue. It extends Gali's (1994) composition of aggregate demand model by endogenous...
Persistent link: https://www.econbiz.de/10009019155
Countercyclical markups are a key transmission mechanism in many endogenous business cycle models. Yet, recent findings suggest that aggregate markups in the US are procyclical. The current model addresses this issue. It extends Gall's (1994) composition of aggregate demand model by endogenous...
Persistent link: https://www.econbiz.de/10009019476
indeterminacy. First we show that the consumption good sector needs to be capital intensive at the private level and labor intensive …
Persistent link: https://www.econbiz.de/10008793403
We present a survey of the main conditions for the occurrence of indeterminacy in discrete-time infinite-horizon models … social returns. We will show that indeterminacy of equilibria is fundamentally based on the consideration of endogenous labor …
Persistent link: https://www.econbiz.de/10008793404