The study considers a stochastic R&D process where the invented production technologies consist of a large number n of complementary components. The degree of complementarity is captured by the elasticity of substitution of the CES aggregator function. Drawing from the Central Limit Theorem and...

The development of the card payment system allows for lowering the costs of money emission and circulation and thereby leads to significant economic gains. Yet relatively small amount of research has been dedicated to the analysis of the determinants of these developments. Therefore, the aim of...

Following Nyman (2010), the paper provides an indicator of resource utilisation (RU) for the Polish economy based on survey and labour market data. The indicator is subsequently used to identify output gap. Using real-time dataset, we find that output gap constructed in this way is revised to a...

We study the determinants of capital income inequality in a general equilibrium portfolio choice model with endogenous information acquisition. The key elements of the model are heterogeneity in investor sophistication and in asset riskiness. The model implies capital income inequality that...

This paper empirically investigates the evolution and the sources of interest rate pass-through heterogeneity in the Eurozone for a sample of 11 euro area countries over the period 2003M1-2011M12. Considering two harmonized bank retail rates, we first estimate single equation error correction...

We generalize the normalized Constant Elasticity of Substitution (CES) production function by allowing the elasticity of substitution to vary isoelastically with (i) relative factor shares, (ii) marginal rates of substitution, (iii) capital–labor ratios, or (iv) capital–output ratios....

We evaluate two most popular approaches to implementing financial frictions into DSGE models: the Bernanke et al. (1999) setup, where financial frictions enter through the price of loans, and the Kiyotaki and Moore (1997) model, where they concern the quantity of loans. We take both models to...

We generalize the concept of the natural rate of interest (Laubach and Williams, 2003; Woodford, 2003) by defining and estimating the the natural yield curve (NYC) - the term structure of natural interest rates. Our motivation stems i.a. from the observation that at times when central banks attempt...

The measured TFP growth in Poland slowed from around 4% in the second half of the 90s to 2% a decade later. This reduction in the growth rate of the Solow residual is argued to reflect the evolution of worker effort and, indirectly, of the labour market within the period. The unobserved worker...

We estimate forward-looking Taylor rules on data from macroeconomic forecasts of three central banks (Bank of England, National Bank of Poland and Swiss National Bank) in order to determine the extent to which these banks are forward looking in their monetary policy decisions. We find that all...