Showing 1 - 10 of 1,620
In this paper, we assess the empirical relationship between population growth, mobility, and state-level capital spending in the United States. To evaluate the magnitude of the coefficients, we introduce an explicit, quantitative political-economy model of government spending determination,...
Persistent link: https://www.econbiz.de/10008636087
We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a realistic firm size distribution. As entrepreneurial firms can grow only slowly and rely heavily on retained earnings to expand the size of their business in this set-up, we show that,...
Persistent link: https://www.econbiz.de/10010692390
In this paper we show that interest rate rules lead to multiple equilibria when the central bank faces a limit to its ability to print money, or when private agents are limited in the amount of bonds that can be pledged to the central bank in exchange for money. Some of the equilibria are...
Persistent link: https://www.econbiz.de/10010628473
We review the role of the central bank's (CB) balance sheet in a textbook monetary model, and explore what changes if the central bank is allowed to pay interest on its liabilities. When the central bank cannot pay interest, away from the zero lower bound its (real) balance sheet is limited by...
Persistent link: https://www.econbiz.de/10010665455
We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a realistic firm size distribution. As entrepreneurial firms can grow only slowly and rely heavily on retained earnings to expand the size of their business in this set-up, we show that,...
Persistent link: https://www.econbiz.de/10011103522
We study the effects of credit shocks in a model with heterogeneous entrepreneurs, financing constraints, and a realistic firm-size distribution. As entrepreneurial firms can grow only slowly and rely heavily on retained earnings to expand the size of their business, we show that, by reducing...
Persistent link: https://www.econbiz.de/10011160658
The aim of this paper is to study the relationship between the intertemporal behavior of taxes and wealth distribution. The optimal‐taxation literature has often concentrated on representative‐agent models, in which it is optimal to smooth distortionary taxes. When tax liabilities are...
Persistent link: https://www.econbiz.de/10011160853
Until the last couple of years, most central banks around the world conducted monetary policy by setting targets for short-term interest rates. Manoeuvering interest rates as a way to achieve low and stable inflation is now regarded as a success story. Yet this was not always the case. As...
Persistent link: https://www.econbiz.de/10011079999
This article shows how the recovery of inflation in 2009-10 occurred precisely at the only time (since 1985) the models would predict disinflation, i.e., inflation went up when the models said it should go down.
Persistent link: https://www.econbiz.de/10010726162
We analyze a new class of equilibria that emerges when a central bank conducts monetary policy by setting an interest rate (as an arbitrary function of its available information) and letting the private sector set the quantity traded. These equilibria involve a run on the central bank's interest...
Persistent link: https://www.econbiz.de/10010886183