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Bauer, Michael D.; Rudebusch, Glenn D. - 2017

Theory predicts that the equilibrium real interest rate, r*t, and the perceived trend in inflation, ð*t, are key determinants of the term structure of interest rates. However, term structure analyses generally assume that these endpoints are constant. Instead, we show that allowing for time...

Persistent link: https://www.econbiz.de/10011688099

Central bank policy rates : are they cointegrated?

Caporale, Guglielmo Maria; Carcel, Hector; Gil-Alaña, … - 2017

This paper analyses the stochastic properties of and the bilateral linkages between the central bank policy rates of the US, the Eurozone, Australia, Canada, Japan and the UK using fractional integration and cointegration techniques respectively. The univariate analysis suggests a high degree of...

Persistent link: https://www.econbiz.de/10011619627

The fiscal theory of the price level with a bubble

Brunnermeier, Markus Konrad; Merkel, Sebastian; … - 2020

This paper incorporates a bubble term in the standard FTPL equation to explain why countries with persistently negative primary surpluses can have a positively valued currency and low inﬂation. It also provides an example with closed-form solutions in which idiosyncratic risk on capital...

Persistent link: https://www.econbiz.de/10012213139

Functional shocks to inflation expectations and real interest rates and their macroeconomic effects

Anderl, Christina; Caporale, Guglielmo Maria - 2023

This paper applies a recently developed method (Inoue and Rossi, 2021) to estimate functional inflation expectations and ex-ante real interest rate shocks, and then examines their macroeconomic effects in the context of a Functional Vector Autoregressive model with exogenous variables...

Persistent link: https://www.econbiz.de/10014364953

A re-examination of the link between real exchange rates and real interest rate differentials

Hoffmann, Mathias; MacDonald, Ronald - 2003

The real exchange rate - real interest rate (RERI) relationship is central to most open economy macroeconomic models. However, empirical support for the relationship, especially when cointegrationbased methods are used, is rather weak. In this paper we reinvestigate the RERI relationship using...

Persistent link: https://www.econbiz.de/10011506475

Disentangling frictions across the world : markups versus trade costs

Heid, Benedikt; Stähler, Frank - 2024

markups over time. With minimal assumptions, we can disentangle aggregate markup and trade cost changes from observed changes … that across all country pairs, on average, bilateral aggregate markups have increased by 2.8% per year. As bilateral trade … changes. Markups have increased less in high-income countries than in other countries. …

Persistent link: https://www.econbiz.de/10015081337

Product differentiation and oligopoly : a network approach

Pellegrino, Bruno - 2023

This paper develops a theory of oligopoly and markups in general equilibrium. Firms compete in a network of product … corporations in the USA, using publicly-available data. Using the model, I compute firm-level markups and decompose them into: 1) a …

Persistent link: https://www.econbiz.de/10013503368

Growing by the masses revisiting the link between firm size and market power

Afrouzi, Hassan; Drenik, Andres; Kim, Ryan - 2020

document that while firms mainly grow by selling to more customers, their markups are only associated with their average sales … customer acquisition and variable markups. Relative to a model without customer acquisition, our model generates higher …

Persistent link: https://www.econbiz.de/10012300240

The dynamics of product and labor market power : evidence from Lithuania

Ding, Ziran; Garcia-Louzao, Jose; Jouvanceau, Valentin - 2024

2018. We first show that both markets are not perfectly competitive, as both price markups and wage markdowns are far from …

Persistent link: https://www.econbiz.de/10014452325

Markups, markdowns, and bargaining in a vertical supply chain

Avignon, Rémi; Chambolle, Claire; Guigue, Etienne; … - 2025

This article bridges monopoly, monopsony, and countervailing power theories to analyze their welfare implications in a vertical supply chain. We develop a bilateral monopoly model with bargaining that accommodates upstream monopsony and downstream monopoly power. In equilibrium, the...

Persistent link: https://www.econbiz.de/10015434407