nep-dge New Economics Papers
on Dynamic General Equilibrium
Issue of 2005‒12‒01
73 papers chosen by
Christian Zimmermann
University of Connecticut
  1. Vector Autoregressions and Reduced Form Representations of DSGE Models By Federico Ravenna
  2. Monetary Shocks in a Model with Loss of Skills By Julen Esteban-Pretel; Elisa Faraglia
  3. On-the-job Search and the Cyclical Dynamics of the Labor Market By Thomas A. Lubik; Michael U. Krause
  4. Accounting for General Equilibrium Effects in Program Evalution By Miana Plesca
  5. Heterogeneity within Communities: A Stochastic Model with Tenure Choice By Sven Rady; Francois Ortalo-Magne
  6. A Likelihood-Based Evaluation of the Segmented Markets Friction in Equilibrium Monetary Models By Filippo Occhino; John Landon-Lane
  7. Optimal Stabilization Policies in a Model with Financial Intermediation By Christopher Waller; Aleksander Berentsen
  8. Income taxation with uninsurable endowment and entrepreneurial investment risks By Sagiri Kitao
  9. Wealth inequality: data and models By Marco Cagetti; Mariacristina De Nardi
  10. Labor Turnover Costs and the Cyclical Behavior of Vacancies and Unemployment By Manuel Toledo; Jose I. Silva
  11. Aggregate Shocks and the Volatility of House Prices By V. Sanchez-Marcos; J.V.Rios-Rull
  12. A Model of Dynamic Liquidity Contracts By Onur Ozgur
  13. (Relative Price) Lessons from Taking an AK Model to the Data By Ana Balcao Reis; Joao Ejarque
  14. The Welfare Gains of Improving Risk Sharing in Social Security By Conny Olovsson
  15. Bargaining in Monetary Economies By Christopher Waller; Guillaume Rocheteau
  16. Labor Market Dynamics under Long Term Wage Contracting By Leena Rudanko
  17. How Large are Search Frictions By Pieter Gautier; Coen Teulings
  18. Two-Fund Separation in Dynamic General Equilibrium By Karl Schmedders
  19. Forward-Looking Hiring Behavior and the Dynamics of the Aggregate Labor Market By Eran Yashiv
  20. Monetary Policy, Taxes, and the Business Cycle By Michael R. Pakko; William T. Gavin; Finn E. Kydland
  21. Aggregate Shocks, Idiosyncratic Risk, and Durable Goods Purchases: Evidence from Turkeys 1994 Financial Crisis By Burcu Duygan
  22. Risk Sharing By Martin Gervais; Paul Klein
  23. I - Q Cycles By Patrick Francois; Huw Lloyd- Ellis
  24. Search Equilibrium, Production Parameters and Social Returns to Education: Theory and Estimation By Andrey Launov; Christian Holzner
  25. U.S. Inequality: Debt Constraints or Incomplete Markets? By Juan Carlos Cordoba
  26. The Product Cycle and Inequality By Boyan Jovanovic
  27. Monetary Equilibria in a Cash-in-Advance Economy with Incomplete Financial Markets By Jinhui H. Bai; Ingolf Schwarz
  28. Job Displacement Risk and the Cost of Business Cycles By Tom Krebs
  29. Shooting the Auctioneer By Roger E. A. Farmer
  30. Private Debt and Idiosyncratic Volatility: A Business Cycle Analysis By Matteo Iacoviello
  31. Growth Expectations and Business Cycles By Wouter J. Denhaan; Georg Kaltenbrunner
  32. Evaluating the Performance of the Search and Matching Model By Eran Yashiv
  33. Computing Second-Order-Accurate Solutions for Rational Expectation Models Using Linear Solution Methods By Giovanni Lombardo; Alan Sutherland
  34. Wage Distribution with a Two-Sided Job Auction By Marja-Liisa Halko; Klaus Kultti; Juha Virrankoski
  35. Insurance and Opportunities: The Welfare Implications of Rising Wage Dispersion By Jonathan Heathcote; Kjetil Storesletten
  36. Education Decisions, Equilibrium Policies and Wages Dispersion By Gianluca Violante; Giovanni Gallipoli; Costas Meghir
  37. Stabilization versus Insurance: Welfare Effects of Procyclical Taxation Under Incomplete Markets By James Costain; Michael Reiter
  38. Entrepreneurship, frictions, and wealth By Marco Cagetti; Mariacristina De Nardi
  39. Bayesian Estimation of Dynamic Discrete Choice Models By Susumu Imai; Neelam Jain
  40. Embodied Technical Change and the Persistence of Vacancies By Reinout De Bock
  41. Adjustment to a Large Shock - Do Households Smooth Low Frequency Consumption? By Nicola Fuchs-Schuendeln
  42. Unemployment Insurance under Moral Hazard and Limited Commitment:Public versus Private Provision By Tim Worall; Jonathan P Thomas
  43. Monetary Policy and Distribution By Stephen D. Williamson
  44. Consumption Along the Life Cycle: How Different is Housing? By Fang Yang
  45. A quantitative theory of the gender gap in wages By Andres Erosa; Luisa Fuster; Diego Restuccia
  46. Fiscal and Monetary policy Interactions in a New Keynesian Model with Liquidity Constraints By V. Anton Muscatelli, Patrizio Tirelli and Carmine Trescroci
  47. Sudden Stops in an Equilibrium Business Cycle Model with Credit Constraints: A Fisherian Deflation of Tobin's Q By Enrique G. Mendoza
  48. Minimum Wage and Compliance in a Model of Search On-the-Job By B. Petrongolo; Z. Eckstein; S. Ge
  49. Capital Flows to Developing Countries: the Allocation Puzzle By Olivier Jeanne; Pierre-Olivier Gourinchas
  50. Financial Development and Macroeconomic Stability By Vincenzo Quadrini; Urban Jermann
  51. Markets as Beneficial Constraints on the Government By Adriano Rampini; Alberto Bisin
  52. Solving Dynamic Stochastic Optimization Problems Using the Method of Endogenous Gridpoints By Christopher D. Carroll
  53. Housing tenure and wealth distribution in life-cycle economies By Pedro Silos
  54. Productivity and the Post-1990 U.S. Economy By Ellen McGrattan; Edward Prescott
  55. Income Redistribution and Disability Insurance By Juan Carlos Hatchondo; Hugo Hopenhayn
  56. The Complementarity and Self Productivity of Human Capital Investments in a SDGE Economy with Altruism and Lifetime Liquidity Constraints By Flavio Cunha
  57. Stochastic Dynamic Programming in Space: An Application to British Columbia Forestry By John Rust; Harry J. Paarsch
  58. Technological Diversification By Silvana Tenreyro; Miklos Koren
  59. Why do financial systems differ? History matters. By Cyril Monnet; Erwan Quintin
  60. Time Consistent Monetary Policy with Endogenous Price Rigidity By Henry Siu
  61. Search, Money, and Inflation under Private Information By Huberto M. Ennis
  62. Money and Capital By S. Boragan Aruoba; Christopher J. Waller
  63. Housing and the Macroeconomy: The Role of Implicit Guarantees for Government Sponsored Enterprises By Dirk Krueger; Karsten Jeske
  64. Inefficiency in Legislative Policy-Making: A Dynamic Analysis By Stephen Coate; Marco Battaglini
  65. Housing, House Prices, and the Equity Premium Revisited By Morris Davis; Robert F. Martin
  66. Complete Markets, Enforcement Constraints and Intermediation By Eva Carceles-Poveda; Arpad Abraham
  67. Trade, Production Sharing and the International Transmission of Business Cycles By Linda Tesar; Ariel Burstein; Chris Kurz
  68. Estate taxes, entrepreneuship, and wealth By Mariacristina De Nardi; Marco Cagetti
  69. Wage-Tenure Contracts, Experience and Employment Status By Carlos Carrillo-Tudela
  70. Consumption Inequality and Intra-Household Allocations By Shannon Seitz; Jeremy Lise
  71. Directed search without wage commitment: a new role for minimum wages and unions. By Adrian Masters
  72. Lucas vs. Lucas: On Inequality and Growth By Juan Carlos Cordoba; Genevieve Verdier
  73. Consumption Commitments: Neoclassical Foundations for Habit Formation By Adam Szeidl; Raj Chetty
  1. By: Federico Ravenna
    Keywords: Vector Autoreregression; Dynamic Stochastic General Equilibrium Model; Kalman Filter; Business Cycle Shocks
    JEL: C13 C22 E32
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:841&r=dge
  2. By: Julen Esteban-Pretel (Economics University of Tokyo); Elisa Faraglia
    Keywords: Search and Matching, Loss of Skill, Business Cycles, Monetary Policy
    JEL: J41 J31 E32
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:328&r=dge
  3. By: Thomas A. Lubik; Michael U. Krause (CentER and Department of Economics Tilburg University)
    Keywords: job-to-job mobility, propagation, business cycle, worker flows, seach and matching
    JEL: E24 E32 J64
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:792&r=dge
  4. By: Miana Plesca (Economics University of Guelph)
    Keywords: program evaluation; general equilibrium; job search; matching
    JEL: J64 J68 J38
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:499&r=dge
  5. By: Sven Rady; Francois Ortalo-Magne
    Keywords: Housing Markets, Dynamic Sorting, Tenure Choice
    JEL: R23
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:113&r=dge
  6. By: Filippo Occhino; John Landon-Lane (Economics Rutgers University)
    Keywords: limited participation, segmented markets, Bayesian model comparison, monetary policy shocks.
    JEL: C11 C52 E52
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:116&r=dge
  7. By: Christopher Waller; Aleksander Berentsen (Economics University of Basel)
    Keywords: Financial Intermediation, Aggregate Shocks, Monetary Policy
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:416&r=dge
  8. By: Sagiri Kitao (Economics NYU)
    Keywords: Income Taxation, Entrepreneurs, Dynamic General Equilibrium, Heterogeneous Agents
    JEL: E1 E6 H2 H3
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:514&r=dge
  9. By: Marco Cagetti; Mariacristina De Nardi
    Abstract: In the United States wealth is highly concentrated and very unequally distributed: the richest 1% hold one third of the total wealth in the economy. Understanding the determinants of wealth inequality is a challenge for many economic models. We summarize some key facts about the wealth distribution and what economic models have been able to explain so far.
    Keywords: Wealth
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fip:fedhwp:wp-05-10&r=dge
  10. By: Manuel Toledo (Economics University of Rochester); Jose I. Silva
    Keywords: Labor Markets, Search, Matching, Insider-Outsider, Turnover Costs, Business Cycles
    JEL: J63 J64 J41 E32
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:775&r=dge
  11. By: V. Sanchez-Marcos; J.V.Rios-Rull (Economics Universidad de Cantabria)
    Keywords: housing prices, frictions,aggregate shocks
    JEL: E3
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:648&r=dge
  12. By: Onur Ozgur (Economics New York University)
    Keywords: Credit Rationing, Investment Cycles, Limited Enforceability, Liquidity Provision, Resource Constraints
    JEL: C6 C7 D9 G2
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:251&r=dge
  13. By: Ana Balcao Reis; Joao Ejarque (Economics University of Essex)
    Keywords: Endogenous Growth, Technology Shocks, Investment Shocks.
    JEL: E21 E32 O40
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:312&r=dge
  14. By: Conny Olovsson (Department of Economics Stockholm School of Economics)
    Keywords: Social Security, risk sharing
    JEL: E21 H21 H55
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:584&r=dge
  15. By: Christopher Waller; Guillaume Rocheteau (Department of Economics University of Notre Dame)
    Keywords: Money, Search, Bargaining, Inflation
    JEL: E40 E50
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:55&r=dge
  16. By: Leena Rudanko
    Keywords: Search, Matching, Wage Contracts, Business Cycles
    JEL: E24 E32 J41 J63
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:876&r=dge
  17. By: Pieter Gautier; Coen Teulings (SEO University of Amsterdam)
    Keywords: wages, search, assignment
    JEL: J21 J30 J60
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:175&r=dge
  18. By: Karl Schmedders (MEDS Kellogg School of Management)
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:148&r=dge
  19. By: Eran Yashiv
    Keywords: aggregate labor market, aggregate fluctuations, labor market flows, search, matching, vacancies.
    JEL: E24 E32
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:360&r=dge
  20. By: Michael R. Pakko; William T. Gavin (Research Federal Reserve Bank of St. Louis); Finn E. Kydland
    Keywords: Inflation, Taxation, Business Cycle
    JEL: E31 E32 E42
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:265&r=dge
  21. By: Burcu Duygan
    Keywords: uncertainty, durable goods spending, unemployment, financial crisis
    JEL: D1 D8 D9 E2
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:594&r=dge
  22. By: Martin Gervais; Paul Klein
    Keywords: Risk Sharing; Income Risk; Consumption Risk; Projection
    JEL: C13 C8 D12 E21
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:323&r=dge
  23. By: Patrick Francois (University of British Columbia); Huw Lloyd- Ellis (Queen's University)
    Abstract: We develop a model of 'intrinsic' business cycles, driven by the decentralized behaviour of entrepreneurs and firms making continuous, divisible improvements in their productivity. We show how equilibrium cycles, associated with strategic delays in implementation and endogenous innovation, arise even in the presence of reversible investment. We derive the implications for the cyclical evolution of both tangible (physical) and intangible (knowledge) capital. In particular, our framework is consistent with key aspects of the somewhat puzzling relationship between fixed capital formation and the stockmarket at business cycle frequencies.
    Keywords: Tobin's Q, fixed capital formation, intangible investment, cycles and growth
    JEL: E
    Date: 2005–11–22
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpma:0511023&r=dge
  24. By: Andrey Launov; Christian Holzner (Social Policy and Labor Markets IFOInstitute for Economic Research)
    Keywords: Search, wage correlation, social returns to education
    JEL: J21 J23 J64
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:604&r=dge
  25. By: Juan Carlos Cordoba (Economics Rice University)
    Keywords: Idiosyncratic Risk, Incomplete Markets, Borrowing Constraints, Wealth
    JEL: E2 E44 G22 D
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:235&r=dge
  26. By: Boyan Jovanovic
    Keywords: Technology, Development, Patents
    JEL: E F
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:199&r=dge
  27. By: Jinhui H. Bai (Department of Economics, Yale University); Ingolf Schwarz (Max Planck Institute for Research on Collective Goods)
    Abstract: The general equilibrium model with incomplete financial markets (GEI) is extended by adding fiat money, fiscal and monetary policy and a cash-in-advance constraint. The central bank either pegs the interest rate or money supply while the fiscal authority sets a Ricardian or a non-Ricardian fiscal plan. We prove the existence of equilibria in all four scenarios. In Ricardian economies, the conditions required for existence are not more restrictive than in standard GEI. In non-Ricardian economies, the sufficient conditions for existence are more demanding. In the Ricardian economy, neither the price level nor the equivalent martingale measure are determinate.
    Keywords: Money, incomplete markets, fiscal policy, indeterminacy
    JEL: D52 E40 E50
    Date: 2005–09
    URL: http://d.repec.org/n?u=RePEc:jep:wpaper:05005&r=dge
  28. By: Tom Krebs (Dept of Economics Brown University)
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:188&r=dge
  29. By: Roger E. A. Farmer
    Keywords: Unemployment Real Business Cycles
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:26&r=dge
  30. By: Matteo Iacoviello (Economics Boston College)
    Keywords: Debt, durables, volatility, borrowing constraints, housing
    JEL: E21 E32 E44
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:186&r=dge
  31. By: Wouter J. Denhaan (Economics Subject Area London School of Economics); Georg Kaltenbrunner
    Keywords: labor matching market;
    JEL: E32 J41
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:29&r=dge
  32. By: Eran Yashiv
    Abstract: Does the search and matching model fit aggregate U.S. labor market data? While the modelhas become an important tool of macroeconomic analysis, recent literature pointed to somefailures in accounting for the data. This paper aims to answer two questions: (i) Does themodel fit the data, and, if so, on what dimensions? (ii) Does the data "fit" the model, i.e. whatare the data which are relevant to be explained by the model? The analysis shows that themodel does fit certain specifications of the data on many dimensions, though not on all. Thisincludes capturing the high persistence and high volatility of most of the key variables, aswell as the negative co-variation of unemployment and vacancies. It offers a workable,empirically-grounded version of the model for the analysis of aggregate U.S. labor marketdynamics. The paper provides macroeconomists guidance concerning the relevant "buildingblock" for modelling the labor market, both in terms of the model and in terms of the data.
    Keywords: search, matching, U.S. labor market, vacancies, labor market flows, business cycles.
    JEL: E24 E32 J32 J63
    Date: 2005–02
    URL: http://d.repec.org/n?u=RePEc:cep:cepdps:dp0677&r=dge
  33. By: Giovanni Lombardo; Alan Sutherland
    Abstract: This paper shows how to compute a second-order accurate solution of a non-linear rational expectation model using algorithms developed for the solution of linear rational expectation models. This result is a state-space representation for the realized values of the variables of the model. This state-space representation can easily be used to compute impulse responses as well as conditional and unconditional forecasts.
    Keywords: Second-order approximation; solution method for rational expectation models.
    JEL: E63 E0
    Date: 2005–03
    URL: http://d.repec.org/n?u=RePEc:san:cdmacp:0504&r=dge
  34. By: Marja-Liisa Halko; Klaus Kultti; Juha Virrankoski (Department of Economics University of Helsinki)
    Keywords: wage distribution, job search, auctions
    JEL: J64 J31 J41
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:518&r=dge
  35. By: Jonathan Heathcote (Department of Economics New York University); Kjetil Storesletten
    Keywords: Insurance, Labor supply, Productivity, Wage dispersion, Welfare.
    JEL: D31 D58 D91
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:107&r=dge
  36. By: Gianluca Violante; Giovanni Gallipoli (Economics University College London); Costas Meghir
    Keywords: Education, Inequality, Equilibrium, Policy
    JEL: J20 J24 E20 E60
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:522&r=dge
  37. By: James Costain (Economics Universidad Carlos III de Madrid); Michael Reiter
    JEL: E32 E62 H21
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:704&r=dge
  38. By: Marco Cagetti; Mariacristina De Nardi
    Abstract: Although the role of financial constraints on entrepreneurial choices has received considerable attention, the effects of these constraints on aggregate capital accumulation and wealth inequality are less known. Entrepreneurship is an important determinant of capital accumulation and wealth concentration and, conversely, the distribution of wealth affects entrepreneurial choices in presence of borrowing constraints. We construct a model that matches wealth inequality very well, for both entrepreneurs and non- entrepreneurs. We find that more restrictive borrowing constraints generate less wealth concentration, but also reduce average firm size, aggregate capital, and the fraction of entrepreneurs. We also find that voluntary bequests are an important channel that allows some high-ability workers to establish or enlarge an entrepreneurial activity: with accidental bequests only, there would be fewer large firms, fewer entrepreneurs, and less aggregate capital, but also less wealth concentration.
    Keywords: Loans ; Wealth
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fip:fedhwp:wp-05-09&r=dge
  39. By: Susumu Imai; Neelam Jain (Economics Northern Illinois University)
    Keywords: Structural estimation, Dynamic programming, MCMC
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:432&r=dge
  40. By: Reinout De Bock (Economics Northwestern University)
    Keywords: Embodied Technical Change, Search and Matching, Persistence
    JEL: E24 E32 J64
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:572&r=dge
  41. By: Nicola Fuchs-Schuendeln (Department of Economics Harvard University)
    Keywords: life cycle consumption, natural experiment
    JEL: D12 E21
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:517&r=dge
  42. By: Tim Worall; Jonathan P Thomas
    Keywords: Social Insurance, Moral Hazard, Limited Commitment, Unemployment Insurance, Crowding Out.
    JEL: D61 H31 H55 J65
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:158&r=dge
  43. By: Stephen D. Williamson
    Keywords: monetary policy, monetary theory, Friedman rule, money neutrality
    JEL: E4 E5
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:379&r=dge
  44. By: Fang Yang (Department of Economics University of Minnesota)
    Keywords: Consumption, Housing, Portfolio
    JEL: H31 E21 E27 R21
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:718&r=dge
  45. By: Andres Erosa; Luisa Fuster; Diego Restuccia
    Abstract: Using panel data from the National Longitudinal Survey of Youth (NLSY), we document that gender differences in wages almost double during the first 20 years of labor market experience and that there are substantial gender differences in employment and hours of work during the life cycle. A large portion of gender differences in labor market attachment can be traced to the impact of children on the labor supply of women. We develop a quantitative life-cycle model of fertility, labor supply, and human capital accumulation decisions. We use this model to assess the role of fertility on gender differences in labor supply and wages over the life cycle. In our model, fertility lowers the lifetime intensity of market activity, reducing the incentives for human capital accumulation and wage growth over the life cycle of females relative to males. We calibrate the model to panel data of men and to fertility and child related labor market histories of women. We find that fertility accounts for most of the gender differences in labor supply and wages during the life cycle documented in the NLSY data.
    Keywords: Labor economics ; Wages
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fip:fedrwp:05-09&r=dge
  46. By: V. Anton Muscatelli, Patrizio Tirelli and Carmine Trescroci
    Abstract: This paper derives a NewKeynesiandynamic general equilibrium model with liquidity constrained consumers and sticky prices. The model allows a role for both government spending and taxation in the DGE model. The mode lis then estimated using US data. We demonstrate that there seems to be a significant role for rule-of-thumb consumer behaviour. Our model is then used to analyse the interaction between Fiscal and monetary policies. We examine the extent to which fiscal policy (automatic stabilisers) assist or hinder monetary policy when the latter takes a standard forward-looking inflation targetingf orm. We also examine the extent to which inertia in fiscal policy and the presence of rule-of-thumb consumers aspects output and inflation variability in the presence of such a monetary policy rule..
    JEL: E58 E62 E63
    URL: http://d.repec.org/n?u=RePEc:gla:glaewp:2005_19&r=dge
  47. By: Enrique G. Mendoza
    Keywords: Sudden Stops, Fisherian Deflation, Tobin’s q, Collateral Constraints
    JEL: F41 F32 E44
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:307&r=dge
  48. By: B. Petrongolo; Z. Eckstein (Economics Tel Aviv University); S. Ge
    Keywords: minimum wages, compliance, job search, wage growth
    JEL: J42 J63 J64
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:76&r=dge
  49. By: Olivier Jeanne; Pierre-Olivier Gourinchas
    Keywords: capital flows, emerging countries, Feldstein Horioka, neoclassical growth model, Lucas puzzle
    JEL: F3 F4
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:240&r=dge
  50. By: Vincenzo Quadrini; Urban Jermann
    Keywords: Debt over-hang, financial flexibility, business cycle asymmetries
    JEL: E32 G1
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:692&r=dge
  51. By: Adriano Rampini (Department of Finance Northwestern University); Alberto Bisin
    Keywords: Markets; Optimal Policy; Optimal Taxation; Time Consistency
    JEL: E61 H21 D82
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:325&r=dge
  52. By: Christopher D. Carroll (Economics Johns Hopkins University)
    Keywords: Numerical Optimization; Dynamic Programming; Precautionary Saving
    JEL: C61 C63 E2
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:628&r=dge
  53. By: Pedro Silos
    Abstract: Common practice in the housing and wealth distribution literature has proceeded as if the modeling of housing rental markets was unnecessary due to renters’ relative low levels of wealth and the small fraction they represent in the total population. This paper shows, however, that their inclusion matters substantially when dealing with wealth concentration over the life cycle. Renters are concentrated in the poorer and younger groups. This concentration results in a pattern of housing wealth concentration over an agent’s life that is decreasing, with a slope as steep as that of nonhousing (or financial) wealth. The author constructs an overlapping-generations economy with a housing rental market that is consistent with this fact.
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:fip:fedawp:2005-25&r=dge
  54. By: Ellen McGrattan (Research Federal Reserve Bank of Minneapolis); Edward Prescott
    Keywords: Productivity & Intangibles
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:274&r=dge
  55. By: Juan Carlos Hatchondo; Hugo Hopenhayn
    Keywords: Social insurance
    JEL: H21 H31 I38
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:129&r=dge
  56. By: Flavio Cunha (Department of Economics University of Chicago)
    Keywords: Human Capital Investments, Inequality
    JEL: J24 D31
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:351&r=dge
  57. By: John Rust; Harry J. Paarsch (Economics University of Iowa)
    Keywords: stochastic dynamic programming; optimal timber rotation; spacial economics; rent maximization.
    JEL: C81 D92 L72 Q2
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:81&r=dge
  58. By: Silvana Tenreyro; Miklos Koren (Economics Harvard University, Hungarian Academy of Sciences)
    Keywords: technology choice, volatility, development
    JEL: O11 O14 O41 F4
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:392&r=dge
  59. By: Cyril Monnet; Erwan Quintin
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:275&r=dge
  60. By: Henry Siu
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:821&r=dge
  61. By: Huberto M. Ennis (Research Department Federal Reserve Bank of Richmond)
    Keywords: Random Matching, Private Information, Welfare
    JEL: D83 E31
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:135&r=dge
  62. By: S. Boragan Aruoba (Economics University of Maryland); Christopher J. Waller
    Keywords: money, capital, inflation, welfare
    JEL: E13 E52
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:550&r=dge
  63. By: Dirk Krueger; Karsten Jeske
    Keywords: Housing, Mortgage Market, Default Risk
    JEL: E21 G11 R21
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:242&r=dge
  64. By: Stephen Coate; Marco Battaglini (Economics Princeton University)
    Keywords: political economy
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:209&r=dge
  65. By: Morris Davis; Robert F. Martin (International Finance Federal Reserve Board)
    Keywords: House Prices, Equity Premium, Elasticity
    JEL: E1 G1
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:753&r=dge
  66. By: Eva Carceles-Poveda; Arpad Abraham
    Keywords: Production Economies, Enforcement Constraints, Financial Intermediation
    JEL: D5 E22
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:661&r=dge
  67. By: Linda Tesar; Ariel Burstein (Economics University of Michigan); Chris Kurz
    Keywords: business cycle sychronization, production sharing,
    JEL: F23 F41
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:304&r=dge
  68. By: Mariacristina De Nardi; Marco Cagetti (Economics University of Minnesota)
    Keywords: savings, wealth accumulation, structural estimation, bequests
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:144&r=dge
  69. By: Carlos Carrillo-Tudela (Department of Economics University of Essex)
    Keywords: Search, experience, contracts, promotion, dual labour markets, discrimination.
    JEL: J63 J64 J41
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:110&r=dge
  70. By: Shannon Seitz; Jeremy Lise
    Keywords: Collective Model, Consumption Inequality, Marital Sorting, Adult Equivalence Scales
    JEL: D12 D13 D63
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:448&r=dge
  71. By: Adrian Masters
    Keywords: directed search, commitment, mininimum wage
    JEL: J41
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:347&r=dge
  72. By: Juan Carlos Cordoba (Rice University); Genevieve Verdier (Texas A&M)
    Abstract: Lucas (2004) asserts that 'Of the tendencies that are harmful to sound economics, the most seductive, and in my opinion, the most poisonous, is to focus on questions of distribution...The potential for improving the lives of poor people by finding different ways of distributing current production is nothing [Italics in the original] compared to the apparently limitless potential of increasing production.' In this article we evaluate this claim using an extended version of Lucas' (1987) welfare evaluation framework. We construct a social welfare function following Lucas' (2004) own suggestion of weighing everyone's welfare equally, and compute welfare measures in the same way as Lucas (1987). The result is surprising and robust. The potential welfare gains of redistribution are substantial and likely exceed the welfare gains of economic growth. Moreover, our calculations suggest that US inequality is above its optimal level.
    Keywords: Welfare costs, business cycles, economic growth, inequality
    JEL: E1 E2 D3
    Date: 2005–11–18
    URL: http://d.repec.org/n?u=RePEc:wpa:wuwpma:0511021&r=dge
  73. By: Adam Szeidl; Raj Chetty
    Keywords: Portfolio choice, Housing, Risk Aversion, Microfoundations
    JEL: D81 E21 G11
    Date: 2005
    URL: http://d.repec.org/n?u=RePEc:red:sed005:122&r=dge
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