|
on Dynamic General Equilibrium |
| By: | Heiner Ganßmann (Institut für Soziologie, Freie Universität Berlin) |
| Abstract: | Recent search theoretical models of monetary economies promise micro-foundations and thus a decisive improvement in the theory of money compared to the traditional mainstream approach that starts from a Walrasian general equilibrium framework to introduce money exogenously at the macro level. The promise of micro-foundations is not fulfilled, however. It can be shown that search models implicitly refer to central, most likely collective, agents doing essential work to sustain the monetary economy. |
| Keywords: | micro-foundations, multi-agent modelling, model, macro, monetary economy, money, information, network |
| Date: | 2010–07 |
| URL: | http://d.repec.org/n?u=RePEc:kas:poabec:2010-9&r=dge |
| By: | Marco J. Lombardi (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.); Giulio Nicoletti (Banca d’Italia, Via Nazionale, 91, 00184 Roma, Italy.) |
| Abstract: | Bayesian approaches to the estimation of DSGE models are becoming increasingly popular. Prior knowledge is normally formalized either be information concerning deep parameters’ values (‘microprior’) or some macroeconomic indicator, e.g. moments of observable variables (‘macroprior’). In this paper we introduce a non parametric prior which is elicited from impulse response functions. Results show that using either a microprior or a macroprior can lead to different posterior estimates. We probe into the details of our result, showing that model misspecification is to blame for that. JEL Classification: C11, C51, E30. |
| Keywords: | DSGE Models, Bayesian Estimation, Prior Distribution, Impulse Response Function. |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20111289&r=dge |
| By: | Kirill Borissov; Alexander Surkov |
| Abstract: | We consider a Barro-type endogenous growth model in which the government's purchases of goods and services enter into the production function. The provision of government services is financed by flat-rate (linear) income or lump-sum taxes. It is assumed that individuals differing in their discount factors vote on the tax rates. We propose a concept of voting equilibrium leading to some versions of the median voter theorem for steady-state equilibria, fully characterize steady-state equilibria and show that if the median voter discount factor is sufficiently low, the long-run rate of growth in the case of flat-rate income taxation is higher than that in the case of lump-sum taxation. |
| Keywords: | economic growth, taxation, voting |
| JEL: | O40 D91 H21 H24 H31 P16 |
| Date: | 2010–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:eus:wpaper:ec0110&r=dge |
| By: | Juha Tervala |
| Abstract: | This paper examines the implications of monetary policy rules for exchange rate dynamics. I extend a standard New Open Economy Macroeconomics model with the introduction of a simple money supply rule, whereby central banks change their monetary policy if output diverges from potential output or if inflation diverges from the target inflation. A key result is that, in the case of permanent technology and monetary shocks, the nominal exchange rate does not follow a random walk; instead, the exchange rate undershoots its long-run value. An undershooting of the exchange rate derives from the active monetary policy that both countries conduct. |
| Keywords: | Monetary policy rules, open economy macroeconomics, exchange rate |
| JEL: | E5 F3 F4 |
| Date: | 2010–12 |
| URL: | http://d.repec.org/n?u=RePEc:tkk:dpaper:dp62&r=dge |
| By: | Lehmijoki, Ulla (University of Helsinki); Palokangas, Tapio K. (University of Helsinki) |
| Abstract: | Since World War II, mortality has declined in the developing world. This paper examines the effects of this mortality decline on demographic and economic growth by a family-optimization model, in which fertility is endogenous and wealth yields utility through its status. The decline in mortality stimulates investment and generates an income stream which promotes population growth, but the desire of status hampers fertility and prevents capital-diluting demographic expansion. If status-seeking is strong, then the decline of mortality decreases population growth below its original level. |
| Keywords: | mortality, population growth, economic growth |
| JEL: | O41 J13 J10 O10 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp5422&r=dge |
| By: | Ignazio Angeloni; Ester Faia; Roland Winkler |
| Abstract: | We study alternative scenarios for exiting the post-crisis fiscal and monetary accommodation using the model of Angeloni and Faia (2010), that combines a standard DSGE framework with a fragile banking sector, suitably modified and calibrated for the euro area. Credibly announced and fast fiscal consolidations dominate – based on simple criteria – alternative strategies incorporating various degrees of gradualism and surprise. The fiscal adjustment should be based on spending cuts or else be relatively skewed towards consumption taxes. The phasing out of monetary accommodation should be simultaneous or slightly delayed. We also find that, contrary to widespread belief, Basel III may well have an expansionary macroeconomic effect |
| Keywords: | exit strategies, debt consolidation, fiscal policy, monetary policy, capital requirements, bank runs |
| JEL: | E63 |
| Date: | 2011–01 |
| URL: | http://d.repec.org/n?u=RePEc:kie:kieliw:1676&r=dge |
| By: | Samir Amine; Pedro Lages Dos Santos |
| Abstract: | Nous étudions, dans cet article, le rôle des allocations chômage dans la détermination de la nature des emplois offerts. Nous montrons qu’un système d’indemnisation du chômage généreux, en provoquant une accentuation de la sélectivité des agents, affecte les caractéristiques des emplois créés qui deviennent plus complexes et aboutit ainsi à améliorer la productivité du travail. Or, malgré cette amélioration de la qualité des appariements, la participation au marché du travail diminue. <P>This article aims at understanding the interactions between public policies, such as unemployment benefit systems, and firms’ technological choices. For this purpose, we use a matching model in which workers are vertically differentiated and where the nature of jobs is endogenous. We show that an improvement in unemployment benefits leads to an increase in productivity by making agents more selective and jobs more complex. However, the impact on labour market participation is negative. |
| Keywords: | Appariement, complexité, allocations chômage, productivité et participation, Job Complexity, unemployment benefits, productivity, participation. |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2011s-03&r=dge |
| By: | Samir Amine; Pedro Lages Dos Santos |
| Abstract: | This article aims to understand how public policies affect the behavior of agents in term of selectivity. In other words, we explain how the state of the labour market and, in particular qualification level of workers, affects technological choices of firms. Using a matching model in which workers are vertically differentiated and where the nature of jobs is endogenous, we show that an increase in minimum wage can enhance the recruiting of skilled workers by making firms more selective and jobs more complex. <P>Cet article vise à mieux comprendre comment les régulations publiques modifient le comportement des agents en termes de sélectivité et comment les entreprises adaptent les caractéristiques de leurs emplois en fonction de l’état du marché du travail et, notamment du niveau de qualification de la population active. En utilisant un modèle d’appariement dans lequel les travailleurs sont différenciés verticalement et la nature des emplois est endogène, nous montrons que la revalorisation du salaire minimum peut favoriser l’embauche des qualifiés en rendant les entreprises plus sélectives et les emplois plus complexes. |
| Keywords: | Minimum Wage, Productivity, Participation. , Salaire minimum, productivité et participation. |
| JEL: | J64 J65 |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2011s-04&r=dge |
| By: | Samir Amine; Pedro Lages Dos Santos |
| Abstract: | In this article, we stress the effect of a Negative Income Tax (NIT) scheme on the firms’ behaviour as regards their technological choices. Within the framework of a matching model with differentiation of the agents, we show that a NIT reduces inequalities and rises employment making agents less selective. Moreover, the repercussions of such a policy as regards technological choices are generally underestimated. We show that the introduction of a NIT can encourage the firms to invest in skill substitutability. In other words, they can be brought to lead a “despecialisation” of the jobs offered to the workers which is prejudicial to the productivity, in particular in the long run. <P>Dans ce rapport, nous nous intéressons aux implications d’une politique sociale telle que la mise en place d’un impôt négatif sur le comportement des entreprises en matière de choix technologiques. Pour cela, nous utilisons un modèle d’appariement avec spécialisation des emplois endogènes. Nous montrons que, dans un tel cadre d’analyse, l’introduction d’un système de crédit d’impôt réduit les inégalités et augmente l’emploi mais aux dépens de la productivité du fait d’une moindre sélectivité des agents; ce dernier effet étant alors accompagné par une diminution de la spécialisation des emplois. Il apparaît donc qu’une politique de l’emploi peut conduire à une modification du comportement d’embauche des entreprises favorable à la lutte contre le chômage mais également à une réaction en termes de choix technologiques préjudiciable à la productivité à long terme. |
| Keywords: | Matching, negative income tax, technological choices. , Appariement, impôt négatif et choix technologiques. |
| JEL: | D63 H21 J41 J64 |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2011s-01&r=dge |
| By: | Samir Amine; Pedro Lages Dos Santos |
| Abstract: | Many economists (Atkinson, 1995, Ferry 1995) have presented the mechanism of l'Allocation universelle as the new way forward by the modern social protection. In this article, we propose first to recall the context in which takes up the debate on “l'Allocation universelle”. Using a matching model in which horizontal differentiation of firms and workers is represented by a circle à la Salop (1979), we show that the introduction of “l'Allocation universelle” don’t affect the equilibrium labor market. <P>Face à la progression de la pauvreté et à la relative inefficacité de leurs systèmes redistributifs, de nombreux pays se tournent aujourd'hui vers de nouveaux instruments de politique sociale. De nombreux économistes, parmi lesquels Atkinson (1995), Ferry (1995) ou bien encore Van Parijs (1990) ont trouvé là l'occasion de présenter le mécanisme de l'Allocation universelle comme la nouvelle voie à emprunter par la protection sociale moderne. Nous nous proposons donc d'abord de rappeler dans quel cadre prend place la réflexion sur l'Allocation universelle pour montrer ensuite, dans un modèle d'appariement avec différenciation des agents que, contrairement à ce que peuvent laisser entendre les conclusions de certains travaux sur le sujet, l'introduction d'une véritable Allocation universelle n'a en fait aucun effet sur l'équilibre du marché du travail. |
| Keywords: | Matching, negative income tax, technological choices., Allocation universelle, appariement, productivité. |
| JEL: | D63 J48 J64 |
| Date: | 2011–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2011s-02&r=dge |
| By: | Kirill Borissov; Alexander Surkov |
| Abstract: | We develop two models of economic growth with exhaustible natural resources and consumers heterogeneous in time preferences. The first model assumes private ownership of natural resources. In the second model, natural resources are commonly owned and the resource extraction rate is chosen by voting. We show that if discount factors are given exogenously, the long-run rate of growth under private property is higher than or equal to that under common property. If the discount factors are formed endogenously, under some circumstances common property can result in a higher rate of growth than private property. |
| Keywords: | economic growth, taxation, voting |
| JEL: | Q32 E13 D91 O40 |
| Date: | 2010–08–18 |
| URL: | http://d.repec.org/n?u=RePEc:eus:wpaper:ec0210&r=dge |