Similar Search Results

Debt and Incomplete Financial Markets: A Case for Nominal GDP Targeting

Sheedy, Kevin D. - C.E.P.R. Discussion Papers - 2014

Financial markets are incomplete, thus for many households borrowing is possible only by accepting a financial contract that specifies a fixed repayment. However, the future income that will repay this debt is uncertain, so risk can be inefficiently distributed. This paper argues that a monetary...

Persistent link: https://www.econbiz.de/10011084046

Solving Heterogeneous-Agent Models with Parameterized Cross-Sectional Distributions

Algan, Yann; Allais, Olivier; Den Haan, Wouter - C.E.P.R. Discussion Papers - 2007

disadvantages of the prevailing algorithm that strongly relies on simulation techniques and is easier to implement than existing … possible to avoid Monte Carlo integration. The paper also develops a new simulation procedure that not only avoids cross … finite number of agents. This procedure can help to improve the efficiency of the most popular algorithm in which simulation …

Persistent link: https://www.econbiz.de/10005114163

`1992': Trade and Welfare; A General Equilibrium Model

Gasiorek, Michael; Smith, Alasdair; Venables, Anthony J - C.E.P.R. Discussion Papers - 1992

equilibrium model of trade under imperfect competition. The focus of the paper is the welfare consequences of reducing trade … barriers and the changes in production and trade flows with the rest of the world. Welfare changes by country are reported and … welfare effects arising from imperfect competition. Intra-EC trade liberalization has pro-competitive effects which make a …

Persistent link: https://www.econbiz.de/10005504484

Testing macroeconomic models by indirect inference on unfiltered data

Meenagh, David; Minford, Patrick; Wickens, Michael R. - C.E.P.R. Discussion Papers - 2012

We extend the method of indirect inference testing to data that is not filtered and so may be non-stationary. We apply the method to an open economy real businss cycle model on UK data. We review the method using a Monte Carlo experiment and find that it performs accurately and has good power.

Persistent link: https://www.econbiz.de/10011083255

A Monte Carlo procedure for checking identification in DSGE models

Le, Vo Phuong Mai; Minford, Patrick; Wickens, Michael R. - C.E.P.R. Discussion Papers - 2013

We propose a numerical method, based on indirect inference, for checking the identification of a DSGE model. Monte Carlo samples are generated from the model's true structural parameters and a VAR approximation to the reduced form estimated for each sample. We then search for a different set of...

Persistent link: https://www.econbiz.de/10011084568

The home bias of the poor: Terms of trade effects and portfolios across the wealth distribution

Broer, Tobias - C.E.P.R. Discussion Papers - 2012

This paper documents how poorer and less educated US households hold a smaller fraction of foreign assets in their financial portfolio. This average home bias of the poor is partly due to a lower probability of participating in foreign asset markets, often attributed to fixed costs of market...

Persistent link: https://www.econbiz.de/10011083824

Agglomeration theory with heterogeneous agents

Behrens, Kristian; Robert-Nicoud, Frédéric - C.E.P.R. Discussion Papers - 2014

This chapter surveys recent developments in agglomeration theory within a unifying framework. We highlight how …

Persistent link: https://www.econbiz.de/10011084057

The role of automatic stabilizers in the U.S. business cycle

McKay, Alisdair; Reis, Ricardo - C.E.P.R. Discussion Papers - 2013

Most countries have automatic rules in their tax-and-transfer systems that are partly intended to stabilize economic fluctuations. This paper measures how effective they are. We put forward a model that merges the standard incomplete-markets model of consumption and inequality with the new...

Persistent link: https://www.econbiz.de/10011084125

Providing financial education: a general equilibrium approach

Padula, Mario; Pettinicchi, Yuri - C.E.P.R. Discussion Papers - 2013

Since the early 2000s, the importance of financial literacy for safe financial behaviors has increased in public debate and has been the motivation for several national and international institutions to launch and promote financial education initiatives. Although discussion on the effects of...

Persistent link: https://www.econbiz.de/10011084571

Market Size, Entrepreneurship, and Income Inequality

Behrens, Kristian; Pokrovsky, Dmitry; Zhelobodko, Evgeny - C.E.P.R. Discussion Papers - 2014

We develop a monopolistic competition model with two sectors and heterogeneous agents who self-select into entrepreneurship, depending on entrepreneurial ability. The effect of market size on the equilibrium share of entrepreneurs crucially hinges on properties of the lower-tier utility function...

Persistent link: https://www.econbiz.de/10011084591