Author: Zuliu Hu
Publisher:
ISBN:
Category :
Languages : en
Pages : 26
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Some of the highly controversial questions in macroeconomics critically hinge on the value of a single parameter of consumer preference--the elasticity of intertemporal substitution. This paper provides new estimates of this parameter for individual G-7 and a panel of twenty OECD countries. We find that single equation GMM estimates are typically small and imprecise, consistent with Hall's (1988) finding from the U.S. data. Estimation of a system of equations that takes into account the cross-equation restrictions implied by theory, however, generally gives larger and better determined values for the parameter. The panel procedure also yields relatively large estimates. Overall our multi-country results contradict the hypothesis of zero intertemporal substitution.
Author:
Publisher:
ISBN:
Category :
Languages : en
Pages : 22
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Author: Joon-Ho Hahm
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 22
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Author: Robert Ernest Hall
Publisher:
ISBN:
Category : Consumption (Economics)
Languages : en
Pages : 62
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Does a higher real interest rate induce significant postponement of consumption? According to the theory developed here, this question can be answered by studying the relation between the rate of growth of consumption and expected real interest rates. In postwar data for the United States, expected real returns have declined over time in the stock market and for savings accounts. Over the same period, the rate of growth of consumption has been almost steady. The paper concludes that intertemporal substitution is weak, for if it were strong, the growth rate of consumption would have declined.
Author: Zuliu Hu
Publisher:
ISBN:
Category :
Languages : es
Pages : 22
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Author: Karsten N. Pedersen
Publisher:
ISBN:
Category : Consumo
Languages : en
Pages : 28
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Author: Mr.Jaromir Benes
Publisher: International Monetary Fund
ISBN: 1475505523
Category : Business & Economics
Languages : en
Pages : 71
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Book Description
At the height of the Great Depression a number of leading U.S. economists advanced a proposal for monetary reform that became known as the Chicago Plan. It envisaged the separation of the monetary and credit functions of the banking system, by requiring 100% reserve backing for deposits. Irving Fisher (1936) claimed the following advantages for this plan: (1) Much better control of a major source of business cycle fluctuations, sudden increases and contractions of bank credit and of the supply of bank-created money. (2) Complete elimination of bank runs. (3) Dramatic reduction of the (net) public debt. (4) Dramatic reduction of private debt, as money creation no longer requires simultaneous debt creation. We study these claims by embedding a comprehensive and carefully calibrated model of the banking system in a DSGE model of the U.S. economy. We find support for all four of Fisher's claims. Furthermore, output gains approach 10 percent, and steady state inflation can drop to zero without posing problems for the conduct of monetary policy.
Author: R. David Professor Simpson
Publisher: Routledge
ISBN: 113652472X
Category : Nature
Languages : en
Pages : 306
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Book Description
In this volume, a group of distinguished international scholars provides a fresh investigation of the most fundamental issues involved in our dependence on natural resources. In Scarcity and Growth (RFF, 1963) and Scarcity and Growth Reconsidered (RFF, 1979), researchers considered the long-term implications of resource scarcity for economic growth and human well-being. Scarcity and Growth Revisited examines these implications with 25 years of new learning and experience. It finds that concerns about resource scarcity have changed in essential ways. In contrast with the earlier preoccupation with the adequacy of fuel, mineral, and agricultural resources and the efficiency by which they are allocated, the greatest concern today is about the Earth‘s limited capacity to handle the environmental consequences of resource extraction and use. Opinion among scholars is divided on the ability of technological innovation to ameliorate this 'new scarcity.' However, even the book‘s more optimistic authors agree that the problems will not be successfully overcome without significant advances in the legal, financial, and other social institutions that protect the environment and support technical innovation. Scarcity and Growth Revisited incorporates expert perspectives from the physical and life sciences, as well as economics. It includes issues confronting the developing world as well as industrialized societies. The book begins with a review of the debate about scarcity and economic growth and a review of current assessments of natural resource availability and consumption. The twelve chapters that follow provide an accessible, lively, and authoritative update to an enduring-but changing-debate.
Author: Mr.Paul Cashin
Publisher: International Monetary Fund
ISBN: 145197504X
Category : Business & Economics
Languages : en
Pages : 41
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This paper examines the relationship between terms of trade shocks, private saving, and the current account position. The relationship between these variables is theoretically ambiguous: an adverse transitory terms of trade shock can either induce a deterioration or an improvement in the current account, depending on whether the resulting income effects are greater or less than the resulting substitution effects. The substitution effects involve both intertemporally substituting consumption and intratemporally substituting consumption between importables and nontradables. The relative strength of these substitution effects is estimated using data for five OECD countries during 1970/95; both are found to exert large and significant effects on the current account balance.
Author: Klaus Wälde
Publisher: Klaus Wälde
ISBN: 3000324283
Category :
Languages : en
Pages : 332
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