Search Results - subject:"complementarities"

Socially optimal coordination: Characterization and policy implications

Angeletos, George-Marios; Pavan, Alessandro - 2006

In recent years there has been a growing interest in macro models with heterogeneity in information and complementarity in actions. These models deliver promising positive properties, such as heightened inertia and volatility. But they also raise important normative questions, such as whether...

Persistent link: https://www.econbiz.de/10010282908

Efficient use of information and social value of information

Angeletos, George-Marios; Pavan, Alessandro - 2006

This paper analyzes equlibrium and welfare for a tractable class of economies (games) with externalities, strategic complementarity or substitutability, and heterogenous information. First, we characterize the equilibrium use of information; complementarity heightens the sensitivity of...

Persistent link: https://www.econbiz.de/10010282995

Educational Homogamy: Preferences or Opportunities?

Svarer, Michael; Nielsen, Helena Skyt - School of Economics and Management, University of Aarhus - 2006

educations of partners is explained by opportuni- ties (e.g. low search frictions) or preferences (e.g. complementarities in … frictions in marriage markets of the educational institutions. The other half is attributed to complementarities in household …) or preferences (e.g. complementarities in household production or portfolio optimization). We �nd that half of the …

Persistent link: https://www.econbiz.de/10005439978

Rethinking the Gains from Immigration: Theory and Evidence from the U.S.

Ottaviano, Gianmarco I.P.; Peri, Giovanni - Fondazione ENI Enrico Mattei (FEEM) - 2006

education and experience levels are imperfectly substitutable. Accounting carefully for these complementarities and for the …

Persistent link: https://www.econbiz.de/10005385506

Does preferential trade benefit poor countries? A general equilibrium assessment with nonhomothetic preferences

Stibora, Joachim; de Vaal, Albert - School of Economics, Kingston University - 2006

We study the effects of preferential trade agreements (PTA) in a model where income matters for consumption patterns. We develop a three-country Ricardian trade model in which goods are ranked according to priority and where economies differ in their income level. The poorest (richest) country...

Persistent link: https://www.econbiz.de/10010943340

Hub and spoke bilateralism and the global income distribution

Stibora, Joachim; de Vaal, Albert - School of Economics, Kingston University - 2006

We study the effects of hub and spoke liberalization in a model where income matters for consumption patterns. We use a three-country Ricardian trade model in which goods are ranked according to priority and where economies differ in their income level. The poorest (richest) country has a...

Persistent link: https://www.econbiz.de/10010943347

How Well Does a Small Structural Model with Sticky Prices and Wages Fit Postwar U.S. Data?

Matheron, J.; Poilly, C. - Banque de France - 2006

In this paper, we ask whether a small structural model with sticky prices and wages, embedding various modelling devices designed to increase the degree of strategic complementarity between price-setters, can fit postwar US data. To answer this question, we resort to a two-step empirical...

Persistent link: https://www.econbiz.de/10004998832

Trade Integration, Competiton, and the Decline in Exchange-rate Pass-through

Gust, Christopher; Leduc, Sylvain; Vigfusson, Robert - Society for Economic Dynamics - SED - 2006

Over the past twenty years, U.S. import prices have become less responsive to the exchange rate. We propose that this decline is a result of increased trade integration. To illustrate this effect, we develop an open economy DGE model in which there is strategic complementarity in price setting...

Persistent link: https://www.econbiz.de/10005069292

Does the Diversity of Human Capital Increase GDP? A Comparison of Education Systems

Takii, Katsuya; Tanaka, Ryuichi - Graduate School of Economics, Osaka University - 2006

This paper examines how different education systems affect GDP by influencing the diversity of human capital. We construct an overlapping generation model in which agents are heterogeneous in income and innate ability, and the final goods are produced with differentiated intermediate goods. We...

Persistent link: https://www.econbiz.de/10005773328

Institutions and Development Processes: the Role of Strategic Complementarities. A Review of main Literature

Senatore, Luigi - Volkswirtschaftliche Fakultät, … - 2006

complementarities involved in the development processes, can be a useful way to explain some kinds of relationship between institutions …

Persistent link: https://www.econbiz.de/10005621728