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Author: Willem H. Buiter
Publisher:
ISBN:
Category : Economic policy
Languages : en
Pages : 66
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Book Description
The paper surveys some recent developments in policy evaluation and design in continuous time linear rational expectations models. Much recent work in macroeconomics and open economy macroeconomics fits into this category. First the continuous time analogue is reviewed of the discrete time solution method of Blanchard and Kahn. Some problems associated with this solution method are then discussed, including non-uniqueness and zero roots. Optimal (but in general time-inconsistent) and time-consistent (but in general suboptimal) solutions are derived to the general linear-quadratic optimal control problem, based on work by Calvo, Driffill, Miller and Salmon and the author. A numerical example is solved, involving optimal and time-consistent anti-inflationary policy design in a contract model.
Author: Willem H. Buiter
Publisher:
ISBN:
Category : Economic policy
Languages : en
Pages : 66
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Book Description
The paper surveys some recent developments in policy evaluation and design in continuous time linear rational expectations models. Much recent work in macroeconomics and open economy macroeconomics fits into this category. First the continuous time analogue is reviewed of the discrete time solution method of Blanchard and Kahn. Some problems associated with this solution method are then discussed, including non-uniqueness and zero roots. Optimal (but in general time-inconsistent) and time-consistent (but in general suboptimal) solutions are derived to the general linear-quadratic optimal control problem, based on work by Calvo, Driffill, Miller and Salmon and the author. A numerical example is solved, involving optimal and time-consistent anti-inflationary policy design in a contract model.
Author: Willem H. Buiter
Publisher: University of Michigan Press
ISBN: 9780472101382
Category : Economic development
Languages : en
Pages : 392
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Book Description
Brings together Buiter's major papers on macroeconomic theory and policy
Author: David A. Currie
Publisher: Cambridge University Press
ISBN: 052144196X
Category : Business & Economics
Languages : en
Pages : 441
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Book Description
In this book David Currie and Paul Levine address a broad range of issues concerning the design and conduct of macroeconomic policy in open economies. Adopting neo-Keynesian models for which monetary and fiscal policy have short-term real effects, they analyse active stabilisation policies in both a single- and multi-country context. Questions addressed include: the merits of simple policy rules, policy design in the face of uncertainty and international policy coordination. A central feature of the book is the treatment of credibility and the effect of a policy-maker's reputation for sticking to announced policies. These considerations are integrated with coordination issues to produce a unique synthesis. The volume develops optimal control methods and dynamic game theory to handle relationships between governments and a conscious rational private sector and produces a unified, coherent approach to the subject. This book will be of interest to students and teachers of open economy macroeconomics and to professional economists interested in using macroeconomic models to design policy.
Author: Richard Portes
Publisher: Springer
ISBN: 1349189162
Category : Business & Economics
Languages : en
Pages : 360
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Book Description
Author: Michael Mussa
Publisher:
ISBN:
Category : Economics
Languages : en
Pages : 62
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Book Description
This paper examines five examples of rational expectations models with a continuum of convergent solutions and demonstrates serious difficulties in the economic interpretation of these solutions. The five examples are (1) a model of optimal capital accumulation with a negative rate of time preference, (2) Taylor's (1977) linear rational expectations model of macroeconomic equilibrium; (3) Calvo's (1984) model of contract setting and price dynamics; (4) Obstfeld's (1984) equilibrium model of monetary dynamics with individual optimizing agents; and (5) Calvo's (1978) life-cycle model of savings and asset valuation. In every case, when these models yield a continuum of convergent infinite horizon solutions, these solutions fail to exhibit economically appropriate, forward looking dependence of the endogenous variables on the paths of the exogenous forcing variab1es--a difficulty that does not arise under the circumstances where these models yield unique convergent infinite horizon solutions. Further, the three models that have natural finite horizon versions, either lack finite horizon solutions or have solutions that do not converge to any of the infinite horizon solutions. Again, this difficulty arises only under the circumstances where these models have a continuum of infinite horizon solutions.
Author: Nicos M. Christodoulakis
Publisher:
ISBN:
Category : Econometric models
Languages : en
Pages : 76
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Book Description
Author: Maurice Harry Peston
Publisher: Rowman & Littlefield Publishers
ISBN:
Category : Business & Economics
Languages : en
Pages : 336
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Book Description
This collection of original essays by noted economists was written in honor of William Baumol. The contributors offer new insights into important topics in economics. Contents: MICROECONOMICS: Utility Generated Community Demand, J. Dow and H. Sonnenscheim; Perfect Equilibrium in the Duel, A. Dixit; A General Theory of Monopolistic Competition, J. Stiglitz; MACROECONOMICS: The New Econometrics, A. Blinder; Policy Evaluation and Rational Expectations Models, W. Buiter; Expected Fiscal Policy and the Recession, W. Branson, A. Fraga, R. Johnson; INDUSTRIAL ORGANIZATION: Constraint of the Acquisition Price of Capital Equipment, D. Krupka and L. White; Supervision Technology, Firm Structure and Employees' Welfare, J. Ordover; A Model of Embodied Technical Change, R. Gordon, M. Schankerman, R. Spady; FINANCIAL ECONOMICS: Dividend Payments, J. Cragg; Baumol and Finance, B. Malkiel; Investing in Plant and R&D, J. Bernstein and I. Nadiri; URBAN ECONOMICS: Incentives for Environment Protection, W. Oates; Employment Growth, E. Mills; Models and Policy, E. Bailey
Author: John B. Taylor
Publisher:
ISBN:
Category : Econometric models
Languages : en
Pages : 114
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Book Description
Author: Andrew J. Britton
Publisher: Dartmouth Publishing Company
ISBN:
Category : Business & Economics
Languages : en
Pages : 300
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Book Description
Author:
Publisher:
ISBN:
Category : Economic development
Languages : en
Pages : 1296
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Book Description
