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The Anatomy of Sentiment-Driven Fluctuations

Acharya, Sushant - 2017

We show that sentiments - self-fulfilling changes in beliefs that are orthogonal to fundamentals - can drive persistent aggregate fluctuations under rational expectations. Such fluctuations can occur even in the absence of any exogenous aggregate fundamental shocks. In addition, sentiments also...

Persistent link: https://www.econbiz.de/10012963733

Equilibrium and Optimal Tax Rates in the Models of Aggregate Demand and Aggregate Supply (Laffer-Keynesian Synthesis)

Ananiashvili, Iuri - 2013

The paper presents a macroeconomic equilibrium model in which aggregate demand and aggregate supply are considered not in relation to the price level, as is traditionally done, but in terms of functions dependent on the average tax rate. Based on an analysis of the model, it is shown that when...

Persistent link: https://www.econbiz.de/10013076395

Aggregate Demand and Supply

Farmer, Roger E. A. - 2010

This paper is part of a broader project that provides a microfoundation to the General Theory of J.M. Keynes. I call … this project 'old Keynesian economics' to distinguish it from new-Keynesian economics, a theory that is based on the idea … definitions of aggregate demand and supply found in the General Theory through the lens of a search theory of the labor market. I …

Persistent link: https://www.econbiz.de/10012759829

Macro economic model of COVID-19 pandemic crisis

Čavrak, Vladimir - In: Macroeconomic responses to the COVID-19 pandemic : …, (pp. 85-108). 2021

The economic crisis triggered by the COVID-19 virus is unique in economic history in its mode and rate of occurrence, global coverage, and consequences. The text reveals the mechanisms of the impact of health shock on the economy and the macroeconomic framework of mitigating and exiting the...

Persistent link: https://www.econbiz.de/10012608984

Supply and demand in disaggregated Keynesian economies with an application to the COVID-19 crisis

Baqaee, David; Farhi, Emmanuel - In: American economic review 112 (2022) 5, pp. 1397-1436

Persistent link: https://www.econbiz.de/10013206777

Macroeconomic implications of COVID-19 : can negative supply shocks cause demand shortages?

Guerrieri, Veronica; Lorenzoni, Guido; Straub, Ludwig; … - In: American economic review 112 (2022) 5, pp. 1437-1474

Persistent link: https://www.econbiz.de/10013206792

160 years of aggregate supply and demand in Switzerland

Stuart, Rebecca - 2022

This paper studies the causes of movements in inflation and output in Switzerland over 160 years between 1855 and 2015. Aggregate supply and demand shocks are identified in a structural VAR and their evolution and effect on prices and output is discussed. Shocks to the Swiss economy have...

Persistent link: https://www.econbiz.de/10013175578

Comment : The Nature of the ADAS Model Based on the ISLM Model

Boyd, Derick - 2010

Rao suggests that the Rowan demand curve does not exist but that result is obtained through treating the system as a simultaneous equation problem that will inevitably obtain the standard aggregate demand (AD) result. The Rowan procedure is a conditional function that makes planned AD...

Persistent link: https://www.econbiz.de/10013144069

Uncertainty and the Economy : The Evolving Distributions of Aggregate Supply and Demand Shocks

Bekaert, Geert; Engstrom, Eric; Ermolov, Andrey - 2021

We estimate the time-varying distribution of aggregate supply (AS) and aggregate demand (AD) shocks defined in the Keynesian tradition. In modeling the time variation in higher order moments, we distinguish between traditional Gaussian uncertainty and "bad" uncertainty, associated with negative...

Persistent link: https://www.econbiz.de/10013244019

Uncertainty and Sentiment-Driven Equilibria

Benhabib, Jess - 2013

We construct a model to capture the Keynesian idea that production and employment decisions are based on expectations of aggregate demand driven by sentiments, and that realized demand follows from the production and employment decisions of firms. We cast the Keynesian idea into a simple model...

Persistent link: https://www.econbiz.de/10013078372