This PDF is a selection from an out-of-print volume from... Bureau of Economic Research Volume Title: Economic Analysis of Environmental Problems
... [1] have shown that the removal of the malleability assumption does not change the asymptotic properties of optimal growth models. Only the transition from the initial situation to the ultimate equilibrium is changed. When we come to discuss short-run problems, in section 3, capital will no longer b ...
... [1] have shown that the removal of the malleability assumption does not change the asymptotic properties of optimal growth models. Only the transition from the initial situation to the ultimate equilibrium is changed. When we come to discuss short-run problems, in section 3, capital will no longer b ...
Chapter 3 - halsnarr
... Quantity Supplied (QS) is the amount of a particular type of good firms will want to produce at a given price, holding all else constant. A movement along a supply curve is the change in quantity supplied that occurs when its price changes, holding all else constant. The Law of Supply is the economi ...
... Quantity Supplied (QS) is the amount of a particular type of good firms will want to produce at a given price, holding all else constant. A movement along a supply curve is the change in quantity supplied that occurs when its price changes, holding all else constant. The Law of Supply is the economi ...
Document
... GDP) that will be produced at each price level (the GDP deflator). 2. The aggregate supply curve has two segments: a segment that is positively sloped up to the full employment level of output and a segment that becomes vertical at the full employment level of output. a. The positively sloped segmen ...
... GDP) that will be produced at each price level (the GDP deflator). 2. The aggregate supply curve has two segments: a segment that is positively sloped up to the full employment level of output and a segment that becomes vertical at the full employment level of output. a. The positively sloped segmen ...
Slide 1
... only be used for long-term purposes: Does IT work in practice as the theoretical framework suggest? Is monetary policy so effective and fiscal policy so ineffective? ...
... only be used for long-term purposes: Does IT work in practice as the theoretical framework suggest? Is monetary policy so effective and fiscal policy so ineffective? ...
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: NBER International Seminar on Macroeconomics
... w1 ¼ C1 ð1 L1 Þγ ; w2 ¼ C2 ð1 L2 Þγ ; C2 ¼ θ2 K2α L21α ; θ1 K1α L11α þ ð1 δÞK1 ¼ C1 þ K2 : When agents get positive news about θ2 , this increases demand for current consumption, increases the demand for investment, lowers labor supply, and leaves labor demand unchanged. Hence to equilibra ...
... w1 ¼ C1 ð1 L1 Þγ ; w2 ¼ C2 ð1 L2 Þγ ; C2 ¼ θ2 K2α L21α ; θ1 K1α L11α þ ð1 δÞK1 ¼ C1 þ K2 : When agents get positive news about θ2 , this increases demand for current consumption, increases the demand for investment, lowers labor supply, and leaves labor demand unchanged. Hence to equilibra ...
![price determination and stabilization under free banking system[*]](http://s1.studyres.com/store/data/015999468_1-c015bd920a9264f7e802bc5e7a3c030d-300x300.png)
price determination and stabilization under free banking system[*]
... banking. White, Nataf, Rolnick, Weber, Rockoff, and others have found that free banking systems were inherently or qualified stable. White defines free banking to be a system in which the government does not regulate; the public decides how much real balances to hold and in their attempts to make an ...
... banking. White, Nataf, Rolnick, Weber, Rockoff, and others have found that free banking systems were inherently or qualified stable. White defines free banking to be a system in which the government does not regulate; the public decides how much real balances to hold and in their attempts to make an ...
Is time ripe for price level path stability?
... Second, a commitment to a reversion to a price level path helps to alleviate the zero bound on nominal interest rates. Here the reason is that the changes in the price level help the inter-temporal adjustment. The mechanism described above implies that after a negative shock to the price level infl ...
... Second, a commitment to a reversion to a price level path helps to alleviate the zero bound on nominal interest rates. Here the reason is that the changes in the price level help the inter-temporal adjustment. The mechanism described above implies that after a negative shock to the price level infl ...
AP® Economics - AP Central
... In particular, it isn’t always clear why the vertical axes are labeled with different measures of the interest rate. When students find themselves confused about the money market and the market for loanable funds, it’s often difficult to articulate exactly what it is that creates the confusion. I be ...
... In particular, it isn’t always clear why the vertical axes are labeled with different measures of the interest rate. When students find themselves confused about the money market and the market for loanable funds, it’s often difficult to articulate exactly what it is that creates the confusion. I be ...
Expectations, Taylor Rules and Liquidity Traps
... gives rise to explosive solutions. It includes the rule in a continuous-time version of the basic New-Keynesian model with an adverse natural real interest rate shock that puts the model economy into a liquidity trap, and finds that the three equilibrium paths (Christiano et al. 2011; Werning 2012; ...
... gives rise to explosive solutions. It includes the rule in a continuous-time version of the basic New-Keynesian model with an adverse natural real interest rate shock that puts the model economy into a liquidity trap, and finds that the three equilibrium paths (Christiano et al. 2011; Werning 2012; ...
Cyclical patterns of the spanish economy
... of business cycles in Spain. This task has been possible thanks to the availability of the Spanish National Accounts on a quarterly basis, in particular of the aggregate demand components, as recently computed by the Instituto Nacional de Estadistica. These quarterly data allow us to analyse first, ...
... of business cycles in Spain. This task has been possible thanks to the availability of the Spanish National Accounts on a quarterly basis, in particular of the aggregate demand components, as recently computed by the Instituto Nacional de Estadistica. These quarterly data allow us to analyse first, ...
NBER WORKING PAPER SERIES FIRM-SPECIFIC CAPITAL, NOMINAL RIGIDITIES AND THE BUSINESS CYCLE
... Microeconomic data indicate that firms change prices frequently. Macroeconomic data suggest that inflation is inertial. The conflict is obvious in recent macroeconomic models which account for inflation inertia by assuming that firms re-optimize their prices every six quarters or even less often.1 T ...
... Microeconomic data indicate that firms change prices frequently. Macroeconomic data suggest that inflation is inertial. The conflict is obvious in recent macroeconomic models which account for inflation inertia by assuming that firms re-optimize their prices every six quarters or even less often.1 T ...
ch09
... Inflation Adjustment Line • Three assumptions about the IA line are needed . First, the IA line represents the rate of inflation in the economy at a point in time. It is flat, indicating that prices are sticky in the short run. Second, the IA line shifts after GDP departs from potential. Third, any ...
... Inflation Adjustment Line • Three assumptions about the IA line are needed . First, the IA line represents the rate of inflation in the economy at a point in time. It is flat, indicating that prices are sticky in the short run. Second, the IA line shifts after GDP departs from potential. Third, any ...
Measuring the real Impact of Imports on Jobs
... Where was this clothing coming from? Not the U.S., for sure. In 2007, before the recession started, the U.S. was shipping $24 billion worth of clothing annually. Over the next three years, however, domestic manufacturers laid off 30% of domestic production workers, closed 1,600 clothing production f ...
... Where was this clothing coming from? Not the U.S., for sure. In 2007, before the recession started, the U.S. was shipping $24 billion worth of clothing annually. Over the next three years, however, domestic manufacturers laid off 30% of domestic production workers, closed 1,600 clothing production f ...
PDF
... markets is not uniform across rural households, because some households face lower transaction costs than others (de Janvry, Sadoulet and Gordillo de Anda (1995); Key, Sadoulet and de Janvry (2000); Omamo 1998b; Kurosaki (1995)). The result is a heterogeneous rural economy in which commercial produc ...
... markets is not uniform across rural households, because some households face lower transaction costs than others (de Janvry, Sadoulet and Gordillo de Anda (1995); Key, Sadoulet and de Janvry (2000); Omamo 1998b; Kurosaki (1995)). The result is a heterogeneous rural economy in which commercial produc ...
NBER WORKING PAPER SERIES DYNAMIC BEHAVIOR OF IMPERFECTLY COMPETITIVE ECONOMIES WITH MULTIPLE EQUILIBRIA
... exhibiting multiple equilibria. A history dependent selection criterion is proposed which induces correlated behavior in equilibrium even though agents are playing one-shot gaines and disturbances are not correlated over time. ...
... exhibiting multiple equilibria. A history dependent selection criterion is proposed which induces correlated behavior in equilibrium even though agents are playing one-shot gaines and disturbances are not correlated over time. ...
Aggregate Demand
... purchasing power of consumers’ assets and leads to more consumer demand • Wealth effect of a change in the aggregate price level is the change in consumer spending caused by the altered purchasing power of consumers’ assets • Due to wealth effect, consumer spending, C, falls when the aggregate price ...
... purchasing power of consumers’ assets and leads to more consumer demand • Wealth effect of a change in the aggregate price level is the change in consumer spending caused by the altered purchasing power of consumers’ assets • Due to wealth effect, consumer spending, C, falls when the aggregate price ...
The LM Curve - Imperial College London
... • Essentially, Monetarists believe that (1) money demand is not very responsive to interest rates. Graphically, this means that the money demand curve is very steep. Monetarists also believe however, that (2) investment, in particular, is very responsive to interest rate changes. this makes the IS c ...
... • Essentially, Monetarists believe that (1) money demand is not very responsive to interest rates. Graphically, this means that the money demand curve is very steep. Monetarists also believe however, that (2) investment, in particular, is very responsive to interest rate changes. this makes the IS c ...
ECON112 (Spring 2011)
... (f) Suppose the government increases taxes and government expenditure by 100 at the same time. Solve for the new equilibrium. Y = 160 + 0.6 (Y – 100-100) + 150 +250 Y*** = 1100 Alternatively, Y = 100 [1/(1 – MPC) – C1 /(1– MPC)] = 100 Y*** = Y* + Y = 1100 ...
... (f) Suppose the government increases taxes and government expenditure by 100 at the same time. Solve for the new equilibrium. Y = 160 + 0.6 (Y – 100-100) + 150 +250 Y*** = 1100 Alternatively, Y = 100 [1/(1 – MPC) – C1 /(1– MPC)] = 100 Y*** = Y* + Y = 1100 ...
Ch 29
... All three events decrease U.S. real GDP. The deep world recession and the fall in expected future profits decrease the price level. The rise in the world oil price increases the price level. So the combined effect on the price level is ambiguous. ...
... All three events decrease U.S. real GDP. The deep world recession and the fall in expected future profits decrease the price level. The rise in the world oil price increases the price level. So the combined effect on the price level is ambiguous. ...