Similar Search Results

Behrens, Kristian - 2018

We develop a general equilibrium model of monopolistic competition with a traded and a non-traded sector. Using a broad class of homothetic preferences—that generate variable markups, display a simple behavior of their elasticity of substitution, and nest the ces as a limiting case—we show...

Persistent link: https://www.econbiz.de/10012918067

Extending the Input-Output Table Based on Firm-Level Data

Tang, Heiwai - 2016

This paper proposes a general method to extend a standard input-output (IO) table to incorporate firm heterogeneity when portraying the domestic segment of global value chains in a country. We develop a quadratic optimization model to estimate an extended IO table that reports inter-sector...

Persistent link: https://www.econbiz.de/10012994585

Econometric Analysis of Production Networks with Dominant Units

Pesaran, M. Hashem; Yang, Cynthia Fan - 2021

This paper builds on the work of Acemoglu et al. (2012) and considers a production network with unobserved common technological factor and establishes general conditions under which the network structure contributes to aggregate fluctuations. It introduces the notions of strongly and weakly...

Persistent link: https://www.econbiz.de/10013315482

Short-Term Price Effects of a Carbon Tax and Implications for Sectors Competitiveness in Small Open Economies

Gonne, Nicolas - 2021

Asymmetric climate policies are expected to distort the level-playing field regarding international trade, singularly to the detriment of small open economies. The paper develops a flexible method that provides essential input regarding the design of offsetting measures. It builds on...

Persistent link: https://www.econbiz.de/10013316128

Analyzing Structural Reforms Using a Behavioral Macroeconomic Model

De Grauwe, Paul - 2017

We use a behavioral macroeconomic model to analyze how structural reforms affect the economy in the short and in the long run. We consider two types of structural reforms. The first one increases the flexibility of wages and prices; the second one raises potential output in the economy. We find...

Persistent link: https://www.econbiz.de/10012952403

Beyond the DSGE Straitjacket

Pesaran, M. Hashem - 2011

Academic macroeconomics and the research department of central banks have come to be dominated by Dynamic, Stochastic, General Equilibrium (DSGE) models based on micro-foundations of optimising representative agents with rational expectations. We argue that the dominance of this particular sort...

Persistent link: https://www.econbiz.de/10013125067

Tests of Policy Ineffectiveness in Macroeconometrics

Pesaran, M. Hashem - 2014

This paper proposes tests of policy ineffectiveness in the context of macroeconometric rational expectations models. It is assumed that there is a policy intervention that takes the form of changes in the parameters of a policy rule, and that there are sufficient observations before and after...

Persistent link: https://www.econbiz.de/10013050473

Behavioral Economics and Macroeconomic Models

Driscoll, John C. - 2014

Over the past 20 years, macroeconomists have incorporated more and more results from behavioral economics into their models. We argue that doing so has helped fixed deficiencies with standard approaches to modeling the economy — for example, the counterfactual absence of inertia in the...

Persistent link: https://www.econbiz.de/10013053066

An Extended Macro-Finance Model with Financial Factors

Dewachter, Hans - 2013

This paper extends the benchmark Macro-Finance model by introducing, next to the standard macroeconomic factors, additional liquidity-related and return forecasting factors. Liquidity factors are obtained from a decomposition of the TED spread while the return-forecasting (risk premium) factor...

Persistent link: https://www.econbiz.de/10013095098

Equity as a Prerequisite for Stable Cooperation in a Public-Good Economy - The Core Revisited

Buchholz, Wolfgang; Peters, Wolfgang - 2021

on the one hand and the core property of an allocation on the other. In particular we show that it is an inhomogeneous … sacrifice”) which is derived from the egalitarian-equivalent concept suggested by Moulin (1987). We also develop a simple core … test by which it can be checked whether a given allocation is in the core thus being a possible outcome of a cooperative …

Persistent link: https://www.econbiz.de/10013316192