Marc Flandreau
- Published in print:
- 2004
- Published Online:
- August 2004
- ISBN:
- 9780199257867
- eISBN:
- 9780191601279
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199257868.003.0002
- Subject:
- Economics and Finance, Economic History
Chapter 1 describes the international monetary landscape between 1848 and 1873. The prominent role of bullion is emphasized. It also reviews existing theories of the operation of a bimetallic system. ...
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Chapter 1 describes the international monetary landscape between 1848 and 1873. The prominent role of bullion is emphasized. It also reviews existing theories of the operation of a bimetallic system. The main point is that a bimetallic system rests on bimetallic arbitrage: agents will buy the depreciating metal and sell the appreciating one, herby stabilizing their relative value. This suggest that it is key to study the actual operation of bimetallic arbitrage.Less
Chapter 1 describes the international monetary landscape between 1848 and 1873. The prominent role of bullion is emphasized. It also reviews existing theories of the operation of a bimetallic system. The main point is that a bimetallic system rests on bimetallic arbitrage: agents will buy the depreciating metal and sell the appreciating one, herby stabilizing their relative value. This suggest that it is key to study the actual operation of bimetallic arbitrage.
Lawrence A. Boland
- Published in print:
- 2017
- Published Online:
- May 2017
- ISBN:
- 9780190274320
- eISBN:
- 9780190274368
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780190274320.003.0011
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter will critically examine today’s common ways to build equilibrium models. These specifically include Dynamic-Stochastic General Equilibrium models, game theoretical models and empirical ...
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This chapter will critically examine today’s common ways to build equilibrium models. These specifically include Dynamic-Stochastic General Equilibrium models, game theoretical models and empirical GE models. Each of these types of equilibrium model try to address the issues of how a model’s decision makers get the information needed to guarantee the attainment of a state of equilibrium. The chapter addresses the alleged limits of general equilibrium models (particularly the issues of dynamics, time and expectations), the current attempts to overcome the limits of general equilibrium models, and three empirical alternatives to Walrasian general equilibrium models. These alternatives include the Computable General Equilibrium models and the Applied General Equilibrium models. The third model involves building econometric models only after evaluating the statistical properties of the data before using them in the model.Less
This chapter will critically examine today’s common ways to build equilibrium models. These specifically include Dynamic-Stochastic General Equilibrium models, game theoretical models and empirical GE models. Each of these types of equilibrium model try to address the issues of how a model’s decision makers get the information needed to guarantee the attainment of a state of equilibrium. The chapter addresses the alleged limits of general equilibrium models (particularly the issues of dynamics, time and expectations), the current attempts to overcome the limits of general equilibrium models, and three empirical alternatives to Walrasian general equilibrium models. These alternatives include the Computable General Equilibrium models and the Applied General Equilibrium models. The third model involves building econometric models only after evaluating the statistical properties of the data before using them in the model.
Kartik B. Athreya
- Published in print:
- 2013
- Published Online:
- May 2014
- ISBN:
- 9780262019736
- eISBN:
- 9780262314404
- Item type:
- book
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262019736.001.0001
- Subject:
- Economics and Finance, Macro- and Monetary Economics
In the wake of recent events, macroeconomics has come under intense scrutiny, often from non-economists. Yet because macroeconomics is now a highly technical undertaking, it will be very hard for ...
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In the wake of recent events, macroeconomics has come under intense scrutiny, often from non-economists. Yet because macroeconomics is now a highly technical undertaking, it will be very hard for non-specialists on their own to sift through the body of knowledge we have accumulated, or to assess the manner in which we structure inquiries. Unless one finds this satisfactory, and I do not, the profession has some work to do. This book is an attempt to describe, in entirely nontechnical (i.e. plain English) terms, where modern macroeconomics gets its ideas from and how it goes about its business. The target audience is that of thoughtful and curious readers who lack the narrow background or time needed to read either advanced textbooks or articles in academic economics journals.Less
In the wake of recent events, macroeconomics has come under intense scrutiny, often from non-economists. Yet because macroeconomics is now a highly technical undertaking, it will be very hard for non-specialists on their own to sift through the body of knowledge we have accumulated, or to assess the manner in which we structure inquiries. Unless one finds this satisfactory, and I do not, the profession has some work to do. This book is an attempt to describe, in entirely nontechnical (i.e. plain English) terms, where modern macroeconomics gets its ideas from and how it goes about its business. The target audience is that of thoughtful and curious readers who lack the narrow background or time needed to read either advanced textbooks or articles in academic economics journals.
Jean-Pascal Bénassy
- Published in print:
- 2011
- Published Online:
- April 2015
- ISBN:
- 9780195387711
- eISBN:
- 9780190261405
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:osobl/9780195387711.003.0010
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter discusses the three lines of research used in assessing basic models of fluctuations in competitive markets, namely research with the use of Dynamic Stochastic General Equilibrium ...
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This chapter discusses the three lines of research used in assessing basic models of fluctuations in competitive markets, namely research with the use of Dynamic Stochastic General Equilibrium models, a typical Sunspot model, and a combination of Keynesian theory, the Samuelson destabilizing accelerator, and the Philips curve. It explains that the Dynamic Stochastic General Equilibrium models provide simpler solutions, as they answer simple first-order conditions of asset pricing, and address labor fluctuations. This chapter also includes sample problems regarding alternative shocks in the government and households, incomplete capital depreciation, a Real Business Cycle model with generations, and with autocorrelated shocks.Less
This chapter discusses the three lines of research used in assessing basic models of fluctuations in competitive markets, namely research with the use of Dynamic Stochastic General Equilibrium models, a typical Sunspot model, and a combination of Keynesian theory, the Samuelson destabilizing accelerator, and the Philips curve. It explains that the Dynamic Stochastic General Equilibrium models provide simpler solutions, as they answer simple first-order conditions of asset pricing, and address labor fluctuations. This chapter also includes sample problems regarding alternative shocks in the government and households, incomplete capital depreciation, a Real Business Cycle model with generations, and with autocorrelated shocks.
Devashish Mitra
- Published in print:
- 2017
- Published Online:
- September 2017
- ISBN:
- 9780262035231
- eISBN:
- 9780262337687
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262035231.003.0003
- Subject:
- Political Science, International Relations and Politics
This chapter discusses how trade can affect poverty through a large number of channels, based on growth, efficiency and distribution. The redistributive channels also affect inequality. Case studies ...
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This chapter discusses how trade can affect poverty through a large number of channels, based on growth, efficiency and distribution. The redistributive channels also affect inequality. Case studies of China and India show that the country with the greater rise in inequality, namely China, has grown faster and seen bigger poverty reductions. Cross-country regressions also show the possibility of a poverty reducing impact of trade reforms. And, there exists considerable evidence for specifically the growth channel. Most of the intra-country studies, both direct, reduced-form ones, as well as those based on empirical general-equilibrium analysis, also provide strong support for the poverty-reducing effects of trade. Moving to inequality, many aspects, such as wage inequality, overall income inequality and labor shares, have been studied. The chapter shows that the evidence on the impact of trade on inequality has been quite mixed.Less
This chapter discusses how trade can affect poverty through a large number of channels, based on growth, efficiency and distribution. The redistributive channels also affect inequality. Case studies of China and India show that the country with the greater rise in inequality, namely China, has grown faster and seen bigger poverty reductions. Cross-country regressions also show the possibility of a poverty reducing impact of trade reforms. And, there exists considerable evidence for specifically the growth channel. Most of the intra-country studies, both direct, reduced-form ones, as well as those based on empirical general-equilibrium analysis, also provide strong support for the poverty-reducing effects of trade. Moving to inequality, many aspects, such as wage inequality, overall income inequality and labor shares, have been studied. The chapter shows that the evidence on the impact of trade on inequality has been quite mixed.
Jean-Pascal Bénassy
- Published in print:
- 2011
- Published Online:
- April 2015
- ISBN:
- 9780195387711
- eISBN:
- 9780190261405
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:osobl/9780195387711.003.0013
- Subject:
- Economics and Finance, Macro- and Monetary Economics
This chapter defines the use of the Dynamic Stochastic General Equilibrium (DSGE) models with perfect or imperfect competitions. It states that the solution to fluctuations brought by demand shocks ...
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This chapter defines the use of the Dynamic Stochastic General Equilibrium (DSGE) models with perfect or imperfect competitions. It states that the solution to fluctuations brought by demand shocks is to introduce different models for nominal price and wage rigidities to the system. It indicates that several formalizations of rigidities have responded well to nominal shocks. This chapter also includes sample problems regarding the Taylor model, inflation persistence, Calvo and Calvo-Fischer: Comparative Dynamics, and DSGE model with sticky wages.Less
This chapter defines the use of the Dynamic Stochastic General Equilibrium (DSGE) models with perfect or imperfect competitions. It states that the solution to fluctuations brought by demand shocks is to introduce different models for nominal price and wage rigidities to the system. It indicates that several formalizations of rigidities have responded well to nominal shocks. This chapter also includes sample problems regarding the Taylor model, inflation persistence, Calvo and Calvo-Fischer: Comparative Dynamics, and DSGE model with sticky wages.
Thiess Buettner and Katharina Erbe
- Published in print:
- 2015
- Published Online:
- May 2015
- ISBN:
- 9780262027977
- eISBN:
- 9780262321099
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262027977.003.0008
- Subject:
- Economics and Finance, Financial Economics
This chapter analyzes revenue and welfare effects of implementing a Financial Activities Tax (FAT) both from a theoretical and a quantitative perspective. The theoretical analysis allows deriving ...
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This chapter analyzes revenue and welfare effects of implementing a Financial Activities Tax (FAT) both from a theoretical and a quantitative perspective. The theoretical analysis allows deriving expressions for revenue effects and deadweight loss in a general equilibrium setting. Using data for Germany, the quantification suggests that introducing a modest FAT with a rate of 4% results in a revenue gain of about EUR 1.8 bn. If this revenue gain would be used to reduce distorting labor taxes, the results point at a total welfare gain of about EUR 1.5 bn. Comparing these results with Buettner and Erbe (2013), this chapter shows that the introduction of a FAT of 4% would generate similar revenue and slightly larger welfare gains as a repeal of the financial sector Value Added Tax (VAT) exemption.Less
This chapter analyzes revenue and welfare effects of implementing a Financial Activities Tax (FAT) both from a theoretical and a quantitative perspective. The theoretical analysis allows deriving expressions for revenue effects and deadweight loss in a general equilibrium setting. Using data for Germany, the quantification suggests that introducing a modest FAT with a rate of 4% results in a revenue gain of about EUR 1.8 bn. If this revenue gain would be used to reduce distorting labor taxes, the results point at a total welfare gain of about EUR 1.5 bn. Comparing these results with Buettner and Erbe (2013), this chapter shows that the introduction of a FAT of 4% would generate similar revenue and slightly larger welfare gains as a repeal of the financial sector Value Added Tax (VAT) exemption.
