Showing 1 - 10 of 137
Recurrent intervals of inattention to the stock market are optimal if consumers incur a utility cost to observe asset values. When consumers observe the value of their wealth, they decide whether to transfer funds between a transactions account from which consumption must be financed and an...
Persistent link: https://www.econbiz.de/10004991939
Persistent link: https://www.econbiz.de/10005563453
Recurrent intervals of inattention to the stock market are optimal if consumers incur a utility cost to observe asset values. When consumers observe the value of their wealth, they decide whether to transfer funds between a transactions account from which consumption must be financed and an...
Persistent link: https://www.econbiz.de/10010554954
Persistent link: https://www.econbiz.de/10010681516
One of the most serious problems that a central bank in an emerging market economy can face is the sudden reversal of capital inflows. Hoarding international reserves can be used to smooth the impact of such reversals, but these reserves are seldom sufficient and always expensive to hold. In...
Persistent link: https://www.econbiz.de/10005501365
Persistent link: https://www.econbiz.de/10005477927
One of the most serious problems that a central bank in an emerging market economy can face, is the sudden reversal of capital inflows. Hoarding international reserves can be used to smooth the impact of such reversals, but these reserves are seldom sufficient and always expensive to hold. In...
Persistent link: https://www.econbiz.de/10005435801
We study an overlapping-generations economy in which new agents innovate and introduce new products and firms. Innovation is stochastic. The new firms increase overall productivity, but also steal business from pre-existing firms and act as depreciation shocks for the human capital of existing...
Persistent link: https://www.econbiz.de/10011080354
The termination of a representative financial firm due to excess leverage may lead to substantial bankruptcy costs. A benevolent government in the tradition of Ramsey (1927) may be inclined to provide transfers to the firm so as to prevent its liquidation and the associated deadweight costs. The...
Persistent link: https://www.econbiz.de/10011080432
and Cochrane (1999), and is therefore successful at addressing a number of stylized facts about asset prices.
Persistent link: https://www.econbiz.de/10011081045