We study the effects of optimized monetary policy in a semi-structural, estimated small open economy in situations where the policymaker has either complete or less than complete confidence in the model being free from misspecification errors. We use the robust control techniques developed by...

In Japan, demands for Broadband Internet Access and Internet Telephony have increased dramatically in recent years. According to official sources, as of September 2005, there were 21.4 million users of Broadband Internet Access and 9.76 million IP telephones in use. In this study, we employ a...

Existing models of equilibrium unemployment with endogenous labor market participation are complex, generate procyclical unemployment rates, and suffer from the usual defects of matching models. We embed endogenous participation in a simple, tractable job market matching model, show analytically...

In the context of Local Polynomial estimators the global bandwidth parameter takes one of most important roles. There are several methods to get a consistent estimator for it. In particular, starting from the Mean Square Error of Local Polynomial estimators, the “plug-in†method is...

In this paper we develop an overlapping generation version of Kiyotaki and Moore's (hereafter KM) model of the "Credit Cycle". In each period the population consists of two classes of agents: a group of financially constrained agents ("farmers") and one of unconstrained agents ("gatherers")....

The techniques to analyze time series generally use model identification and estimation procedures based on the stationarity assumption of the Data Generating Process (in short DGPs). This hypothesis is often violated when we study financial phenomena, that show non stationary features. When we...

Pragmatic decision makers adjust their view and their decisions to the state of the world. Ideological decision makers follow a guiding principle making decisions that do not change with circumstances. Either philosophy can be successful. This study explores a group of virtual agents, some of...

Czech Republic, Hungary and Poland will have to join the European and Monetary Union. Surprisingly, there is very little work on the welfare consequences of the loss of monetary policy flexibility for these countries. This paper fills this void by providing a framework to evaluate quantitatively...

Dynamic stochastic general equilibrium models have begun to dominate the field of macroeconomic theory and policy making. In this paper, I present the first estimation results of investment expenditure for the french economy, applying the bayesian estimation approach of DSGE models. first, I...

Paper presents various dynamic FX rate simulation models based upon time-dependent market clearing conditions. Discussed nonlinear models follow classical concept of computer agent interactions between chartists and fundamentalists. Within each trading period agents select proper trading rules...