nep-dge New Economics Papers
on Dynamic General Equilibrium
Issue of 2006‒07‒15
seventeen papers chosen by
Christian Zimmermann
University of Connecticut

  1. Multi-Step Perturbation Solution of Nonlinear Rational Expectations Models By Peter Zadrozny; Bureau of Labor Statistics
  2. Monetary Policy and the Distribution of Money and Capital By Miguel Molico
  3. Dynamic Suboptimality of Competitive Equilibrium in Multiperiod Overlapping Generations Economies By Espen Henriksen
  4. A Search Model of Unemployment and Inflation By Etienne Lehmann
  5. Fiscal Policy in an estimated open-economy model for the EURO area. By Ratto Marco; European Commission
  6. Labor Market Institutions and Aggregate Fluctuations in a Search and Matching Model By Francesco Zanetti
  7. The Time Varying Volatility of Macroeconomic Fluctuations By Alejandro Justiniano
  8. Unemployment, Capital and Hours: On the quantitative performance of a DSGE By Philip Jung
  9. Monetary Policy with Heterogeneous Agents and Credit Constraints By Xavier Ragot; Yann Algan
  10. Linear-Quadratic Approximation, Efficiency and Target-Implementability By Paul Levine
  11. Inequality Constraints in Recursive Economies By Rendahl Pontus
  12. Oil Price Shocks, Monetary Policy Rules and Welfare. By Fiorella de Fiore
  13. Back to square one: identification issues in DSGE models By Luca Sala; Fabio Canova; UPF
  14. Demographic Uncertainty and Labour Market Imperfections in Small Open Economy By Juha Kilponen
  15. Flat Tax Reforms in the U.S.: a Boon for the Income Poor By Javier Diaz-Gimenez
  16. Inspecting the noisy mechanism: the stochastic growth model with partial information By Liam Graham
  17. Bilateral Matching and Latin Squares By Aliprantis, C. D.; Camera, G.; Puzzello, D.

  1. By: Peter Zadrozny; Bureau of Labor Statistics
    Keywords: solving dynamic stochastic equilibrium models, 4th-order approximation
    JEL: C51 C63 C68
    Date: 2006–07–04
  2. By: Miguel Molico (Bank of Canada; University of Western Ontario)
    Keywords: search, money, capital, monetary policy, redistribution, wealth
    JEL: E40 E50
    Date: 2006–07–04
  3. By: Espen Henriksen (GSIA, CMU)
    Date: 2006–07–04
  4. By: Etienne Lehmann (ERMES (CNRS and University of Paris 2 Panthéon Assas) and IZA Bonn)
    Abstract: In this paper, I introduce money in the standard labor-matching model (Mortensen and Pissarides 1999, Pissarides 2000). A double coincidence problem makes Fiat Money necessary as a medium of exchange. In the long-run, a rise in the rate of money growth leads to higher inflation and higher unemployment, so the long-run Phillips curve is not vertical. The optimal monetary growth rate decreases with the workers’ bargaining power, the level of unemployment benefits and the payroll tax rate.
    Keywords: inflation, unemployment, search-matching, Friedman rule
    JEL: E24 E52 J64
    Date: 2006–06
  5. By: Ratto Marco; European Commission
    Keywords: DSGE Models, Fiscal Policy
    JEL: E12 E62 C13
    Date: 2006–07–04
  6. By: Francesco Zanetti (Bank of England)
    Date: 2006–07–04
  7. By: Alejandro Justiniano (Board of Governors of the Federal Reserve)
    Keywords: Great Moderation, Stochastic Volatility, Investment Specific Technology Shock, Relative Price of Investment, DSGE Models
    JEL: C32 E32
    Date: 2006–07–04
  8. By: Philip Jung (University of Frankfurt)
    Keywords: Unemployment
    JEL: E30 E24 J64
    Date: 2006–07–04
  9. By: Xavier Ragot; Yann Algan
    Keywords: monetary policy, Credit constraints, Welfare
    JEL: E2 E5
    Date: 2006–07–04
  10. By: Paul Levine (University of Surrey)
    Keywords: Linear-quadratic approximation, dynamic stochastic general equilibrium models, utility-based loss function
    JEL: E52 E37 E58
    Date: 2006–07–04
  11. By: Rendahl Pontus (European University Institute)
    Keywords: Inequality constraints; Envelope theorem; Recursive methods; Time iteration
    JEL: C61 C63 C68
    Date: 2006–07–04
  12. By: Fiorella de Fiore
    Keywords: oil price shocks; montary policy; fiscal policy; DSGE
    JEL: E32 E52 E63 F41
    Date: 2006–07–04
  13. By: Luca Sala (Università Bocconi, IGIER); Fabio Canova; UPF
    Keywords: identification, dsge models
    JEL: C13 C51 C52
    Date: 2006–07–04
  14. By: Juha Kilponen (Bank of Finland)
    Keywords: Demographics, Uncertainty, DSGE, Labour Markets
    JEL: E62 E27 H55
    Date: 2006–07–04
  15. By: Javier Diaz-Gimenez (Universidad Carlos III)
    Keywords: Flat-tax reforms; Efficiency; Inequality; Earnings distribution; Income distribution
    JEL: D31 E62 H23
    Date: 2006–07–04
  16. By: Liam Graham (University College)
    Keywords: DGE; Partial information; Measurement error
    JEL: E32 E37
    Date: 2006–07–04
  17. By: Aliprantis, C. D.; Camera, G.; Puzzello, D.
    Abstract: We develop a general procedure to construct pairwise meeting processes characterized by two features. First, in each period the process maximizes the number of matches in the population. Second, over time agents meet everybody else exactly once. We call this type of meetings "absolute strangers." Our methodological contribution to economics is to offer a simple procedure to construct a type of decentralized trading environments usually employed in both theoretical and experimental economics. In particular, we demonstrate how to make use of the mathematics of Latin Squares to enrich the modeling of matching economies.
    Keywords: Latin squares ; Matching models ; Spatial interactions
    JEL: C00 C78 D83 E00
    Date: 2006–07

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