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Tax Smoothing in a Business Cycle Model with Capital-Skill Complementarity

Angelopulos, Kōnstantinos - 2014

This paper undertakes a normative investigation of the quantitative properties of optimal tax smoothing in a business cycle model with state contingent debt, capital-skill complementarity, endogenous skill formation and stochastic shocks to public consumption as well as total factor and capital...

Persistent link: https://www.econbiz.de/10013054319

Business Cycle Effects of Credit and Technology Shocks in a DSGE Model with Firm Defaults

Pesaran, M. Hashem - 2011

financial institutions in the transmission of credit and technology shocks to the real economy. A positive credit shock, defined … between loan and deposit rates. The effects of the credit shock tend to be highly persistent even without price rigidities and …

Persistent link: https://www.econbiz.de/10013119521

Macroeconomic Fluctuations in a Stylized DSGE Model with Disequilibrium Dynamics

Van Aarle, Bas - 2012

This study develops a stylised DSGE model, that departs in one aspect: it replaces the general equilibrium approach by disequilibrium economics. In this way, richer macroeconomic adjustment dynamics result, as it is not necessary to assume that goods and labour markets continuously clear. The...

Persistent link: https://www.econbiz.de/10013096548

Firm-Specific Productivity Risk Over the Business Cycle : Facts and Aggregate Implications

Bachmann, Ruediger - 2009

Is time-varying firm-level uncertainty a major cause or amplifier of the business cycle? This paper investigates this question in the context of a heterogeneous-firm RBC model with persistent firm-level productivity shocks and lumpy capital adjustment, where cyclical changes in uncertainty...

Persistent link: https://www.econbiz.de/10013154684

The Cross-Section of Firms Over the Business Cycle : New Facts and a DSGE Exploration

Bachmann, Rudi - 2009

-level investment is procyclical. We show that a heterogeneous-firm RBC model with quantitatively realistic countercyclically disperse … state investment rate distribution, produces investment dispersion that positively comoves with the cycle, with a …

Persistent link: https://www.econbiz.de/10013155672

Price Rigidities and the Granular Origins of Aggregate Fluctuations

Pasten, Ernesto - 2017

We study the aggregate implications of sectoral shocks in a multi-sector New Keynesian model featuring sectoral heterogeneity in price stickiness, sector size, and input-output linkages. We calibrate a 341 sector version of the model to the United States. Both theoretically and empirically,...

Persistent link: https://www.econbiz.de/10012947907

Natural Volatility, Welfare and Taxation

Posch, Olaf - 2006

Cyclical components are analytically computed in a theoretical model of stochastic endogenous fluctuations and growth. Volatility is shown to depend on the speed of convergence of the cyclical component, the expected length of a cycle and on the altitude of the slump. Taxes affect these channels...

Persistent link: https://www.econbiz.de/10012779787

Booms and Busts : New Keynesian and Behavioral Explanations

De Grauwe, Paul - 2013

Capitalism is characterized by booms and busts. Periods of strong growth in output alternate with periods of declines in economic growth. Every macro-economic theory should attempt to explain these endemic business cycle movements. In this paper I present two paradigms that attempt to explain...

Persistent link: https://www.econbiz.de/10013093974

Investment Shocks, Tax Evasion and the Consumption Puzzle : A DSGE Analysis with Financial Frictions

Chiarini, Bruno - 2016

explaining the consumption path after a Marginal Efficiency of Investment shock. We use an otherwise standard medium-scale New …

Persistent link: https://www.econbiz.de/10012984510

What Drives Aggregate Investment? : Evidence from German Survey Data

Bachmann, Ruediger; Zorn, Peter - 2021

The ifo Investment Survey asks firms in the German manufacturing sector about the importance of sales, technological … factors, finance, return expectations, and macroeconomic policy for their investment activity in a given year. We show that … these subjective investment determinants 1) capture economically what their labels suggest, and 2) have strong explanatory …

Persistent link: https://www.econbiz.de/10013315790