Coordinating Business Cycles ∗ Edouard Schaal Mathieu Taschereau-Dumouchel
... Our paper belongs to a long tradition in macroeconomics that views recessions as episodes of coordination failures. In a seminal paper, Diamond (1982) proposes a search model of the goods market subject to a thick market externality. The model features multiple rational expectation equilibria that c ...
... Our paper belongs to a long tradition in macroeconomics that views recessions as episodes of coordination failures. In a seminal paper, Diamond (1982) proposes a search model of the goods market subject to a thick market externality. The model features multiple rational expectation equilibria that c ...
commodity price fluctuations and macro - unu-wider
... tables to give the primary content of final output. Popkin (1974), using a similar stage-of-process model, concluded that of the 8.2 percent increase in U.S. consumer prices from 1973 to 1974, 3.7 percentage points were due to increases in commodity prices over and above their trend rates of growth. ...
... tables to give the primary content of final output. Popkin (1974), using a similar stage-of-process model, concluded that of the 8.2 percent increase in U.S. consumer prices from 1973 to 1974, 3.7 percentage points were due to increases in commodity prices over and above their trend rates of growth. ...
Full Text ( Final Version , 272kb )
... managed economy is that the latter is focused on exploitation and the entrepreneurial economy is more focused on exploration. The entrepreneurial economy is more innovative, because creative destruction comes more often from entrepreneurs. Creative destruction is the process of breaking a product li ...
... managed economy is that the latter is focused on exploitation and the entrepreneurial economy is more focused on exploration. The entrepreneurial economy is more innovative, because creative destruction comes more often from entrepreneurs. Creative destruction is the process of breaking a product li ...
MB0026- Unit 1- Meaning And Importance Of Managerial Economics
... purchase more goods at present even though the current price is higher. 4. Fear of future rise in price If people expect future hike in prices, they buy more even though they feel that current prices are higher. Otherwise, they have to pay a still high price for the same product. 5. Speculation ...
... purchase more goods at present even though the current price is higher. 4. Fear of future rise in price If people expect future hike in prices, they buy more even though they feel that current prices are higher. Otherwise, they have to pay a still high price for the same product. 5. Speculation ...
Preview Sample 2
... Suppose the CEO of a major corporation has five subsidiary companies. Only one of these companies is making better than the return on similar investments that the company could be making if it invested its financial capital outside the company. The CEO tells each of these subsidiary companies that t ...
... Suppose the CEO of a major corporation has five subsidiary companies. Only one of these companies is making better than the return on similar investments that the company could be making if it invested its financial capital outside the company. The CEO tells each of these subsidiary companies that t ...
Fiscal Rules for Resource Windfall Allocation: The Case of
... version of the model developed in Agénor (2016) to the Trinidad and Tobago economy. The contribution of this research is that it is the …rst country application of the Agénor framework. This paper is also the …rst attempt to provide a rigorous assessment of how much of the resource windfall should b ...
... version of the model developed in Agénor (2016) to the Trinidad and Tobago economy. The contribution of this research is that it is the …rst country application of the Agénor framework. This paper is also the …rst attempt to provide a rigorous assessment of how much of the resource windfall should b ...
chapter 3 – interdependence between major sectors
... The Monetary Sector As per the checklist: 2.1 Functions of money (chapter 15.1) List the functions of money: 1. Money is a medium of exchange (this is the primary function) o It allows us to move beyond a barter economy o where has to be a double coincidence of wants for exchange to happen o The sys ...
... The Monetary Sector As per the checklist: 2.1 Functions of money (chapter 15.1) List the functions of money: 1. Money is a medium of exchange (this is the primary function) o It allows us to move beyond a barter economy o where has to be a double coincidence of wants for exchange to happen o The sys ...
LIST OF MEMBERS WHO PREPARED SUPPORT MATERIAL FOR
... goods. There can be more than one method for producing a good. More labour and less capital (i.e., labour intensive technique) or more capital and less labour (i.e., capital intensive technique) can be used for production of a good. Since resources are scarce, decision has to be taken about which t ...
... goods. There can be more than one method for producing a good. More labour and less capital (i.e., labour intensive technique) or more capital and less labour (i.e., capital intensive technique) can be used for production of a good. Since resources are scarce, decision has to be taken about which t ...
PDF
... is dropped from the observation. In the first case we have completed spell (419 spells in our data) and the second case is a right-censored spell (578). In the model we include intervalspecific duration dummy variables (Durat1-Durat10) to define the spell-duration. The estimation of these dummies wi ...
... is dropped from the observation. In the first case we have completed spell (419 spells in our data) and the second case is a right-censored spell (578). In the model we include intervalspecific duration dummy variables (Durat1-Durat10) to define the spell-duration. The estimation of these dummies wi ...
Management of New Technology Ec261 Lecture 7
... suitable vehicle for static resource allocation, but the large firm operating in a concentrated market is the most powerful engine of progress and … long run expansion of output … Perfect competition … has no title to being set up as a model of ideal efficiency.” Why might this be true? 1. Firms req ...
... suitable vehicle for static resource allocation, but the large firm operating in a concentrated market is the most powerful engine of progress and … long run expansion of output … Perfect competition … has no title to being set up as a model of ideal efficiency.” Why might this be true? 1. Firms req ...
NBER WORKING PAPER SERIES REAL EXCHANGE RATES AND PRODUCTIVITY GROWTH IN THE
... much real exchange rates based on the GDP deflator and consumer price index must diverge from those based on the prices of traded goods in order for the two economies to remain competitive. The next part exaniines the implications of these movements in real exchange rates for relative wages in the t ...
... much real exchange rates based on the GDP deflator and consumer price index must diverge from those based on the prices of traded goods in order for the two economies to remain competitive. The next part exaniines the implications of these movements in real exchange rates for relative wages in the t ...
Fiscal Policy under Imperfect Competition with Flexible Prices: An
... In a perfectly competitive economy without market imperfections, any competitive equilibrium will be Pareto optimal. Hence there can be no ef ciency motive for macroeconomic policy. However, the presence of imperfect competition in the form of market power leads to an equilibrium which will in gener ...
... In a perfectly competitive economy without market imperfections, any competitive equilibrium will be Pareto optimal. Hence there can be no ef ciency motive for macroeconomic policy. However, the presence of imperfect competition in the form of market power leads to an equilibrium which will in gener ...
Economics EOCT Study Guide
... HOW TO USE THE STUDY GUIDE This study guide is designed to help you prepare to take the Economics/Business/ Free Enterprise EOCT. It will give you valuable information about the EOCT, explain how to prepare to take the EOCT, and provide some opportunities to practice for the EOCT. The study guide is ...
... HOW TO USE THE STUDY GUIDE This study guide is designed to help you prepare to take the Economics/Business/ Free Enterprise EOCT. It will give you valuable information about the EOCT, explain how to prepare to take the EOCT, and provide some opportunities to practice for the EOCT. The study guide is ...
A Modern Reader in Institutional and Evolutionary Economics : Key
... proceeding apace, it had not reached the levels that we find now. In the 1970s, even prestigious journals such as the American Economic Review and the xiii ...
... proceeding apace, it had not reached the levels that we find now. In the 1970s, even prestigious journals such as the American Economic Review and the xiii ...
NBER WORKING PAPER SERIES RATIONAL ADDICTION, PEER EXTERNALITIES Donald S. Kenkel
... consumption of the addictive good raises the marginal utility of addictive consumption when old (an addiction effect), but also lowers overall utility in the future due to a detrimental health effect. Since individuals make consumption and savings choices simultaneously, an individual’s choice of ad ...
... consumption of the addictive good raises the marginal utility of addictive consumption when old (an addiction effect), but also lowers overall utility in the future due to a detrimental health effect. Since individuals make consumption and savings choices simultaneously, an individual’s choice of ad ...
1 - Editorial Express
... market transactions, as one product is used as an input for another, the contribution of shared resources is progressively obfuscated and swamped by other costs. The system, therefore, does not maintain accurate information, and the signals and incentives within the economy are rather blunt and cann ...
... market transactions, as one product is used as an input for another, the contribution of shared resources is progressively obfuscated and swamped by other costs. The system, therefore, does not maintain accurate information, and the signals and incentives within the economy are rather blunt and cann ...
Does the United States Have a Productivity Slowdown or a
... previously, domestic production of these products has plunged, making this mismeasurement less important for GDP. Although David Byrne, Stephen Oliner, and Daniel Sichel (2015) show that microprocessor (MPU) price declines are substantially understated, this has little immediate implication for prod ...
... previously, domestic production of these products has plunged, making this mismeasurement less important for GDP. Although David Byrne, Stephen Oliner, and Daniel Sichel (2015) show that microprocessor (MPU) price declines are substantially understated, this has little immediate implication for prod ...
01/2014 Esteban Pérez Caldentey and Matías Vernengo Raúl Prebisch and Economic Dynamics:
... Prebisch thought that the growth process of capitalist economies was eminently cyclical. As he puts it (1948A in R.P.O., Vol. III, p. 499): “The cycle is the typical form of growth that capitalism has had historically and continues to have. Economic activity…expands and contracts continually in an i ...
... Prebisch thought that the growth process of capitalist economies was eminently cyclical. As he puts it (1948A in R.P.O., Vol. III, p. 499): “The cycle is the typical form of growth that capitalism has had historically and continues to have. Economic activity…expands and contracts continually in an i ...
Investment Hangover and the Great Recession
... the liquidity trap or exogenous money supply, restricts the e¢ cient reallocation of resources between sectors. A large macroeconomics literature investigates the role of reallocation shocks relative to aggregate activity shocks in generating unemployment (see, for instance, Lilien (1982), Abraham a ...
... the liquidity trap or exogenous money supply, restricts the e¢ cient reallocation of resources between sectors. A large macroeconomics literature investigates the role of reallocation shocks relative to aggregate activity shocks in generating unemployment (see, for instance, Lilien (1982), Abraham a ...
NBER WORKING PAPELSERIES ON THE TIMING AND EFFICIENCY OF CREATIVE DESTRUCI'ION
... Our first step is to present the model we will be using to analyze creative destruction throughout the paper. We first describe the basic structure of our model economy. The next two subsections characterize, in turn, the efficient centrally planned outcome and the decentralized bargaining equilibri ...
... Our first step is to present the model we will be using to analyze creative destruction throughout the paper. We first describe the basic structure of our model economy. The next two subsections characterize, in turn, the efficient centrally planned outcome and the decentralized bargaining equilibri ...