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A generalized approach to indeterminacy in linear rational expectations models

Bianchi, Francesco; Nicolò, Giovanni - In: Quantitative economics : QE ; journal of the … 12 (2021) 3, pp. 843-868

We propose a novel approach to deal with the problem of indeterminacy in linear rational expectations models. The … number of explosive roots in presence of indeterminacy. The solution in this expanded state space, if it exists, is always … and any degree of indeterminacy, and it can be implemented even when the boundaries of the determinacy region are unknown …

Persistent link: https://www.econbiz.de/10012598516

Relevance of chaos and strange attractors in the Samuelson-Hicks oscillator

Verne, Jean-François - In: Economic thought 10 (2021) 1, pp. 32-45

In this paper, we look for the relevance of chaos in the well-known Hicks-Samuelson's oscillator model investigating the endogenous fluctuations of the national income between two limits: full employment income and under-employment income. We compute the Lyapunov exponent, via Monte-Carlo...

Persistent link: https://www.econbiz.de/10012623438

A stationary mean-field equilibrium model of irreversible investment in a two-regime economy

Aïd, René; Basei, Matteo; Ferrari, Giorgio - 2023

We consider a mean-field model of firms competing à la Cournot on a commodity market, where the commodity price is given in terms of a power inverse demand function of the industry-aggregate production. Investment is irreversible and production capacity depreciates at a constant rate....

Persistent link: https://www.econbiz.de/10014277013

Fiscal management of aggregate demand : the effectiveness of labor tax credits

Ferrière, Axelle; Navarro, Gaston - 2024

We use a quantitative heterogeneous agent model with nominal rigidities and unemployment risk to analyze the effectiveness of several fiscal policies in stabilizing a demand-driven recession. The model delivers empirically realistic distributions of marginal propensities to consume (mpc) and...

Persistent link: https://www.econbiz.de/10015084354

Fiscal multipliers : a heterogenous-agent perspective

Broer, Tobias; Krusell, Per; Öberg, Erik - In: Quantitative economics : QE ; journal of the … 14 (2023) 3, pp. 799-816

We use an analytically tractable heterogeneous‐agent (HANK) version of the standard New Keynesian model to show how the size of fiscal multipliers depends on (i) the distribution of factor incomes, and (ii) the source of nominal rigidities. With sticky prices but flexible wages, the standard...

Persistent link: https://www.econbiz.de/10014342560

A politico-economic model of public expenditure and income taxation

Mayoral, Laura; Esteban Marquillas, Joan María - In: SERIEs : Journal of the Spanish Economic Association 10 (2019) 3/4, pp. 479-507

This paper contributes to the literature on majority voting over fiscal policies. We depart from the standard model in two dimensions. First, besides redistributing income, the government uses the net tax revenue to finance the provision of goods and services that become in-kind transfers to the...

Persistent link: https://www.econbiz.de/10012179305

The macroeconomic effects of government spending shocks in New Zealand

Lyu, Yifei - 2021

This paper estimates the macroeconomic effects of government spending shocks in New Zealand. Using a structural vector autoregression (SVAR) model, I find small output multipliers for government consumption but large multipliers for government investment. Importantly, the real exchange rate...

Persistent link: https://www.econbiz.de/10012548884

Defense and Non-defense vs Debt : how does defense and non-defense government spending impact the dynamics of federal government debt in the United States?

Ahmed, Haydory Akbar; Mahmood, Sharif; Shadmani, Hedieh - In: Journal of government and economics : JGE 7 (2022), pp. 1-12

This paper explores the dynamic relationship among defense and non-defense government spending, the government debt, and the output gap in the United States. We estimate structural vector auto-regression (SVAR) models for the full sample (1947:Q1 to 2021:Q1), as well as two sub-samples:...

Persistent link: https://www.econbiz.de/10013429220

The role of automatic stabilizers in business cycle : the case of Indonesia

Kuncoro, Haryo - In: European journal of government and economics : EJGE 10 (2021) 2, pp. 167-184

The use of large fiscal stimulus packages to dampen the impact of Covid-19 recently has raised concerns about the effectiveness of the discretionary fiscal policy. This paper aims at analysing the feasibility of automatic fiscal stabilisers to mitigate economic fluctuations in the case of...

Persistent link: https://www.econbiz.de/10013174018

A model of cycles and bubbles under heterogeneous beliefs in financial markets

Burs, Carina - In: Cogent economics & finance 11 (2023) 2, pp. 1-29

I study the effect of heterogeneous beliefs about asset prices on the long-term behavior of financial markets. Starting from the ideas of Abreu and Brunnermeier (2003), a two-dimensional system of differential equations is developed. The first dynamic variable is the asset price growth rate. The...

Persistent link: https://www.econbiz.de/10014501110