Search Results - subject:"Reaction function"

Estimating simple fiscal policy reaction functions for the euro area countries

Plödt, Martin; Reicher, Claire - 2014

We formulate and estimate a simple fiscal policy reaction function for the euro area and individual euro area countries …. Our reaction function allows for primary surpluses to feature three components: an anti-cyclical response of primary … specification of a fiscal policy reaction function which features persistent fiscal policy shocks as opposed to an alternative …

Persistent link: https://www.econbiz.de/10010330391

Estimating monetary policy rules when the zero lower bound on nominal interest rates is approached

Kiesel, Konstantin; Wolters, Maik H. - 2014

Monetary policy rule parameters estimated with conventional estimation techniques can be severely biased if the estimation sample includes periods of low interest rates. Nominal interest rates cannot be negative, so that censored regression methods like Tobit estimation have to be used to...

Persistent link: https://www.econbiz.de/10010330392

Fiscal targeting rules and macroeconomic stability under distortionary taxation

Reicher, Claire A. - 2014

stability for both debt and output. A fiscal reaction function similar to those found in the macro literature may result in … policy mimics a fiscal reaction function with a moderate degree of business cycle stabilization policy. …

Persistent link: https://www.econbiz.de/10010427030

Inflation Targeters Do Not Care (Enough) about Financial Stability: A Myth?

Azangue, Armand Fouejieu - HAL - 2014

The 2008/2009 financial crisis raised issues related to the monetary policy doctrine of the last two decades. Inflation targeting has been criticized as its main objective of inflation stabilisation might have diverted central banks from other concerns such as financial stability. As a first...

Persistent link: https://www.econbiz.de/10010821227

Stackelberg Equilibrium of the Client and the Producer of Embedded Software

Vrankić, Ilko; Bach, Mirjana Pejić; Krpan, Mira - In: Business Systems Research 5 (2014) 1, pp. 68-76

Background: Our research assumes that the software quality affects the product validity. This assumption also refers to embedded software. Objectives: This paper analyses the Stackelberg equilibrium in which the consumer is the leader and the producer of embedded software is the follower....

Persistent link: https://www.econbiz.de/10011019970

Fiscal reaction under endogenous structural changes in Brazil

Simonassi, Andrei G.; Arraes, Ronaldo A.; de Sena, … - In: EconomiA 15 (2014) 1, pp. 68-81

possibility of multiple endogenous structural breaks on the coefficients of government reaction function. From monthly data in the …

Persistent link: https://www.econbiz.de/10011858405

A note on equilibrium leadership in tax competition models

HINDRIKS, Jean; nishimura, YUKIHIRO - Center for Operations Research and Econometrics (CORE), … - 2014

This paper reexamines the work of Kempf and Rota-Graziosi (J. Pub. Econ. 94: 768-776, 2010), which shows that leadership by the small region is the risk dominant equilibrium under the endogenous timing game. They obtain this result in a model where the asymmetry among countries translates into...

Persistent link: https://www.econbiz.de/10011228289

Taylor Rules With Headline Inflation : A Bad Idea

Dhawan, Rajeev; Jeske, Karsten - 2014

Should a central bank accommodate energy price shocks? Should the central bank use core inflation or headline inflation with the volatile energy component in its Taylor rule? To answer these questions, we build a dynamic stochastic general equilibrium model with energy use, durable goods, and...

Persistent link: https://www.econbiz.de/10014048517

Policy Interaction, Expectations and the Liquidity Trap

Evans, George W.; Honkapohja, Seppo - 2014

In this paper we consider inflation and government debt dynamics when monetary policy employs a global interest rate rule and private agents' forecasts using adaptive learning. Because of the zero lower bound on interest rates, active interest rate rules are known to imply the existence of a...

Persistent link: https://www.econbiz.de/10014048589

Generalizing the Taylor Principle : Comment

Farmer, Roger E. A.; Waggoner, Daniel F.; Zha, Tao A. - 2014

Davig and Leeper (2007) have proposed a condition they call the generalized Taylor principle to rule out indeterminate equilibria in a version of the New Keynesian model, where the parameters of the policy rule follow a Markov-switching process. We show that although their condition rules out a...

Persistent link: https://www.econbiz.de/10014048959