Download or read book Evaluation and Indirect Inference Estimation of Inattentive Features in a New Keynesian Framework written by Jenyu Chou and published by . This book was released on 2022 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: We test the standard New Keynesian (NK) Dynamic Stochastic General Equilibrium (DSGE) model under the condition with and without inattentive features, where inattentiveness is modelled in the form of sticky information and imperfect information data revision. All models are tested with the Indirect Inference method, and our test result based on real-time data suggests that the model with sticky information passes the test and consistently outperforms the baseline NK model with full information and rational expectation, while the model with imperfect information data revision fails to pass the test. Furthermore, we show that none of the models passes the test when Survey of Professional Forecaster data are used for model evaluation. Overall, our findings provide important implications on the modelling of expectation formation in the DSGE framework.
Download or read book Lectures on Behavioral Macroeconomics written by Paul De Grauwe and published by Princeton University Press. This book was released on 2012-10-14 with total page 147 pages. Available in PDF, EPUB and Kindle. Book excerpt: In mainstream economics, and particularly in New Keynesian macroeconomics, the booms and busts that characterize capitalism arise because of large external shocks. The combination of these shocks and the slow adjustments of wages and prices by rational agents leads to cyclical movements. In this book, Paul De Grauwe argues for a different macroeconomics model--one that works with an internal explanation of the business cycle and factors in agents' limited cognitive abilities. By creating a behavioral model that is not dependent on the prevailing concept of rationality, De Grauwe is better able to explain the fluctuations of economic activity that are an endemic feature of market economies. This new approach illustrates a richer macroeconomic dynamic that provides for a better understanding of fluctuations in output and inflation. De Grauwe shows that the behavioral model is driven by self-fulfilling waves of optimism and pessimism, or animal spirits. Booms and busts in economic activity are therefore natural outcomes of a behavioral model. The author uses this to analyze central issues in monetary policies, such as output stabilization, before extending his investigation into asset markets and more sophisticated forecasting rules. He also examines how well the theoretical predictions of the behavioral model perform when confronted with empirical data. Develops a behavioral macroeconomic model that assumes agents have limited cognitive abilities Shows how booms and busts are characteristic of market economies Explores the larger role of the central bank in the behavioral model Examines the destabilizing aspects of asset markets
Download or read book Full Employment Abandoned written by William Mitchell and published by Edward Elgar Publishing. This book was released on 2008-01-01 with total page 309 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book by William Mitchell and Joan Muysken is both important and timely. It deals with the issue of the abandonment of full employment as an objective of economic policy in the OECD countries. It argues persuasively that macroeconomic policy has been restrictive over the recent, and not so recent past, and has produced substantial open and disguised unemployment. But the authors show how a job guarantee policy can enable workers, who would otherwise be unemployed, to earn a wage and not depend on welfare support. If such a policy is fully supported by appropriate fiscal and monetary programmes, it can create full employment with price stability, which the authors label as a Non-Accelerating-Inflation-Buffer Employment Ratio (NAIBER). This book is essential reading for any one wishing to understand how we can return to full employment as the normal state of affairs. Philip Arestis, University of Cambridge, UK This book dismantles the arguments used by policy makers to justify the abandonment of full employment as a valid goal of national governments. Bill Mitchell and Joan Muysken trace the theoretical analysis of the nature and causes of unemployment over the last 150 years and argue that the shift from involuntary to natural rate conceptions of unemployment since the 1960s has driven an ideological backlash against Keynesian policy interventions. The authors contend that neo-liberal governments now consider unemployment to be an individual problem rather than a reflection of systemic policy failure and that they are content to use unemployment as a policy instrument to control inflation and coerce the unemployed with work tests and compliance programmes rather than provide sufficient employment. They present a comprehensive theoretical and empirical critique of this policy approach, with a refreshing new framework for understanding modern monetary economies. The authors show that the reinstatement of full employment with price stability is a viable policy goal that can be achieved by activist fiscal policy through the introduction of a Job Guarantee. Full Employment Abandoned will appeal to graduate and postgraduate students and researchers of economics and politics with an interest in macroeconomic policy and the labour market, particularly unemployment and neo-liberal policy frameworks.
Download or read book Capitalism with Chinese Characteristics written by Yasheng Huang and published by Cambridge University Press. This book was released on 2008-09-01 with total page 560 pages. Available in PDF, EPUB and Kindle. Book excerpt: Presents a story of two Chinas – an entrepreneurial rural China and a state-controlled urban China. In the 1980s, rural China gained the upper hand. In the 1990s, urban China triumphed. In the 1990s, the Chinese state reversed many of its rural experiments, with long-lasting damage to the economy and society. A weak financial sector, income disparity, rising illiteracy, productivity slowdowns, and reduced personal income growth are the product of the capitalism with Chinese characteristics of the 1990s and beyond. While GDP grew quickly in both decades, the welfare implications of growth differed substantially. The book uses the emerging Indian miracle to debunk the widespread notion that democracy is automatically anti-growth. As the country marked its 30th anniversary of reforms in 2008, China faces some of its toughest economic challenges and substantial vulnerabilities that require fundamental institutional reforms.
Download or read book Deepening Democracy written by Archon Fung and published by Verso. This book was released on 2003 with total page 328 pages. Available in PDF, EPUB and Kindle. Book excerpt: The forms of liberal democracy developed in the 19th century seem increasingly ill-suited to the problems we face in the 21st. This dilemma has given rise to a deliberative democracy, and this text explores four contemporary cases in which the principles have been at least partially instituted.
Download or read book The Ideology of Home Ownership written by R. Ronald and published by Springer. This book was released on 2008-05-28 with total page 293 pages. Available in PDF, EPUB and Kindle. Book excerpt: Demand for owner-occupied housing has expanded dramatically across modern-industrialized societies in recent years leading to volatile increases in residential property values. This book explores the rise of modern home-ownership as a cultural, socio-political and ideological phenomenon.
Download or read book Are Economists Basically Immoral written by Paul T. Heyne and published by . This book was released on 2008 with total page 516 pages. Available in PDF, EPUB and Kindle. Book excerpt: ""Art Economists Basically Immoral?" and Other Essays on Economics, Ethics, and Religion is a collection of Heyne's essays focused on an issue that preoccupied him throughout his life and which concerns many free-market skeptics - namely, how to reconcile the apparent selfishness of a free-market economy with ethical behavior." "Written with the nonexpert in mind, and in a highly engaging style, these essays will interest students of economics, professional economists with an interest in ethical and theological topics, and Christians who seek to explore economic issues."--BOOK JACKET.
Download or read book NBER Macroeconomics Annual 2009 written by Daron Acemoglu and published by . This book was released on 2010-07 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: The NBER Macroeconomics Annual provides a forum for important debates in contemporary macroeconomics and major developments in the theory of macroeconomic analysis and policy that include leading economists from a variety of fields. The papers and accompanying discussions in NBER Macroeconomics Annual 2009 address how heterogeneous beliefs interact with equilibrium leverage and potentially lead to leverage cycles, the validity of alternative hypotheses about the reason for the recent increase in foreclosures on residential mortgages, the credit rating crisis, quantitative implications for the evolution of the U.S. wage distribution, and noisy business cycles.
Download or read book Innovation Policy and Performance A Cross Country Comparison written by OECD and published by OECD Publishing. This book was released on 2005-06-01 with total page 241 pages. Available in PDF, EPUB and Kindle. Book excerpt: This publication examines the relationship between innovation policy and economic performance in six OECD countries – Austria, Finland, Japan, the Netherlands, Sweden and the United Kingdom. In-depth analyses highlight countries’ strengths and ...
Download or read book Causes of War written by Jack S. Levy and published by John Wiley & Sons. This book was released on 2011-09-15 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: Written by leading scholars in the field, Causes of War provides the first comprehensive analysis of the leading theories relating to the origins of both interstate and civil wars. Utilizes historical examples to illustrate individual theories throughout Includes an analysis of theories of civil wars as well as interstate wars -- one of the only texts to do both Written by two former International Studies Association Presidents
Download or read book Karl Marx and the Classics written by John Milios and published by Routledge. This book was released on 2019-01-16 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This title was first published in 2002: By exploring Marxian value theory and its relevance to present issues of economic analysis, such as the circuit of social capital, the quantity theory of money, instability and economic crises, and economic exploitation and its ideological disguise, this volume investigates the conceptual links between Marxian and Classical Political Economy. The book poses and discusses questions that have yet to be tackled thoroughly in the English-language Marxian literature, such as Marx's theoretical inconsistencies and the role of Engels as editor and "interpreter" of Marx's writings. In doing so, this excellent text provides a much-needed contemporary re-evaluation of the work of one of the world's most enduring writers.
Download or read book Monetary Theory and Policy written by Carl E. Walsh and published by MIT Press. This book was released on 2003 with total page 636 pages. Available in PDF, EPUB and Kindle. Book excerpt: An overview of recent theoretical and policy-related developments in monetary economics.
Download or read book Bounded Rationality written by Sanjit Dhami and published by MIT Press. This book was released on 2022-07-12 with total page 553 pages. Available in PDF, EPUB and Kindle. Book excerpt: Two leaders in the field explore the foundations of bounded rationality and its effects on choices by individuals, firms, and the government. Bounded rationality recognizes that human behavior departs from the perfect rationality assumed by neoclassical economics. In this book, Sanjit Dhami and Cass R. Sunstein explore the foundations of bounded rationality and consider the implications of this approach for public policy and law, in particular for questions about choice, welfare, and freedom. The authors, both recognized as experts in the field, cover a wide range of empirical findings and assess theoretical work that attempts to explain those findings. Their presentation is comprehensive, coherent, and lucid, with even the most technical material explained accessibly. They not only offer observations and commentary on the existing literature but also explore new insights, ideas, and connections. After examining the traditional neoclassical framework, which they refer to as the Bayesian rationality approach (BRA), and its empirical issues, Dhami and Sunstein offer a detailed account of bounded rationality and how it can be incorporated into the social and behavioral sciences. They also discuss a set of models of heuristics-based choice and the philosophical foundations of behavioral economics. Finally, they examine libertarian paternalism and its strategies of “nudges.”
Download or read book The Eleven Pictures of Time written by C K Raju and published by SAGE Publications India. This book was released on 2003-09-11 with total page 590 pages. Available in PDF, EPUB and Kindle. Book excerpt: `Magnificent, a true magnum opus....A tremendously important piece of work.... A truly revolutionary book (not merely an excellent book)' - Arun Ghosh Time is a mystery that has perplexed humankind since time immemorial. Resolving this mystery is of significance not only to philosophers and physicists but is also a very practical concern. Our perception of time shapes our values and way of life; it also mediates the interaction between science and religion both of which rest fundamentally on assumptions about the nature of time. C K Raju begins with a critical exposition of various time-beliefs, ranging from the earliest times through Augustine, Newton and Einstein to Stephen Hawking and current notions of chaos and time travel. He traces the role of organised religion in subverting time beliefs for its political ends. The book points out how this resulted in a facile dichotomy between 'linear' and 'cyclic' time, thereby inaugurating a confusion which, according to the author, has handicapped Western thought ever since, eventually influencing the content of science itself. Thus, this book daringly asserts that physical theory, traditionally regarded as amoral and objective, has depended on cultural beliefs about time. The author points out that time beliefs are again being manipulated today as the credibility of science is being exploited to promote a picture of time and, hence, a pattern of human behaviour which is convenient to the agenda of globalisation of culture. The linkages between modern theology and this 'brave new physics' are traced against the wider context of the so-called 'clash of civilisations', and the attempts to remake the world order. The conclusions point to the need to de-theologise time. The author challenges Einstein's understanding of relativity theory and suggests that a 'tilt in the arrow of time', or a small tendency towards cyclicity, will help repair the prevalent confusion about time. A 'tilt' also enables a physics that permits both memory and creativity, so that purpose and spontaneous growth of order are returned to human life. The book ends with a vision of Man as Creator, surprising God. Extensive research in physics, the history of science, comparative religions, and sociology lend weight to the important and challenging conclusions reached by the author. Written as a rejoinder to Stephen Hawking's A Brief History of Time, this book goes much further and, unlike any previous book, it gives a critical exposition of various world religions-Buddhism, Christianity, Hinduism, Islam, and Jainism-while exploring their intricate links, through time beliefs, to current physics on the one hand, and to global political and economic trends, on the other. This book will appeal to scholars and laypersons equally. It will fascinate anyone who reads it and will teach its readers to question the unquestionable.
Download or read book The Market written by John O'Neill and published by Psychology Press. This book was released on 1998 with total page 246 pages. Available in PDF, EPUB and Kindle. Book excerpt: Provides a critique of the market economy, focusing primarily but not exclusively on the work of F.A. Hayek.
Download or read book Bank Lending in the Knowledge Economy written by Mr.Giovanni Dell'Ariccia and published by International Monetary Fund. This book was released on 2017-11-07 with total page 45 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study bank portfolio allocations during the transition of the real sector to a knowledge economy in which firms use less tangible capital and invest more in intangible assets. We show that, as firms shift toward intangible assets that have lower collateral values, banks reallocate their portfolios away from commercial loans toward other assets, primarily residential real estate loans and liquid assets. This effect is more pronounced for large and less well capitalized banks and is robust to controlling for real estate loan demand. Our results suggest that increased firm investment in intangible assets can explain up to 20% of bank portfolio reallocation from commercial to residential lending over the last four decades.
Download or read book Knowledge Information and Expectations in Modern Macroeconomics written by Philippe Aghion and published by Princeton University Press. This book was released on 2003-01-26 with total page 596 pages. Available in PDF, EPUB and Kindle. Book excerpt: Assembling some of the leading figures in the field of macroeconomics, this text highlights the continuing influence of the ideas of Edmund Phelps since the early 1960s. The contributions address many of the most important current areas of macroeconomic research in 2003.
