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作者：Levy, Daniel; Snir, Avichai; Gotler, Alex; Chen, Haipeng (Allan)
作者单位：Bar Ilan University; Emory University; Wilfrid Laurier University; Netanya Academic College; Open University Israel; University of Kentucky
摘要：We document an asymmetry in the rigidity of 9-ending prices relative to non-9-ending prices. Consumers have difficulty noticing higher prices if they are 9-ending, or noticing price-increases if the new prices are 9-ending, because 9-endings are used as a signal for low prices. Price setters respond strategically to the consumer-heuristic by setting 9-ending prices more often after price-increases than after price-decreases. 9-ending prices, therefore, remain 9-ending more often after price-in...
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作者：Benati, Luca
作者单位：University of Bern
摘要：M1 velocity is, approximately, the permanent component of the short-term rate. This implies that agents-in deciding how much wealth to allocate to non interest-bearing M1, as opposed to interest-bearing assets-almost uniquely react to permanent shocks to the opportunity cost, essentially ignoring transitory shocks. This suggests that money-demand models must be modified to allow for such distinct reaction to permanent and transitory variation in the opportunity cost of holding M1. Under moneta...
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作者：Chahrour, Ryan; Stevens, Luminita
作者单位：Boston College; University System of Maryland; University of Maryland College Park
摘要：Cross-country price differences could reflect regional market segmentation within countries or national segmentation at the border. In a search-based model of price setting, identifying national versus regional segmentation requires data on regional trade flows. A calibration to U.S. and Canadian data implies predominantly regional frictions: U.S. producers are three times more likely to sell in their home region than another U.S. region and Canadian producers are seven times more likely to se...
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作者：Hahn, Volker; Marencak, Michal
作者单位：University of Konstanz; University of Konstanz
摘要：A standard model of price-setting is extended to include an important role for price points as well as sticky information. It makes empirically reasonable predictions about the frequency of price adjustments, the sizes of price increases and decreases, the shape of the hazard function, the fraction of price changes that are price increases, and the relationship between price changes and inflation. When the model of price-setting is integrated into a small-scale DSGE model, it implies plausible...
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作者：Gala, Vito D.; Gomes, Joao F.; Liu, Tong
作者单位：Pacific Investment Management Company, LLC; University of Pennsylvania
摘要：This paper proposes an alternative to standard investment-Q regressions. Policy functions summarize the key predictions of any dynamic investment model, are easy to estimate and, unlike Tobin's Q, account for a large fraction of the variation in corporate investment. As such policy functions are much better suited to evaluate and estimate dynamic investment models. Using this superior characterization of firm investment behavior we use indirect inference methods to estimate deep parameters of ...
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作者：Honkapohja, Seppo; Mitra, Kaushik
作者单位：Aalto University; University of Birmingham; University of Birmingham
摘要：Global learning dynamics for price-level targeting (PLT) monetary policy are analyzed and compared to inflation targeting in a nonlinear New Keynesian model. Domain of attraction of target steady state is a new robustness criterion for policy regimes. Robustness of PLT depends on whether a known target path is incorporated into learning. Credibility is measured by accuracy of this forecasting method relative to simple statistical forecasts evolving through reinforcement learning. Initial credi...
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作者：Huidrom, Raju; Kose, M. Ayhan; Lim, Jamus J.; Ohnsorge, Franziska L.
作者单位：International Monetary Fund; The World Bank; ESSEC Business School
摘要：The fiscal position can affect fiscal multipliers through two channels. Through the Ricardian channel, households reduce consumption in anticipation of future fiscal adjustments when fiscal stimulus is implemented from a weak fiscal position. Through the interest rate channel, fiscal stimulus from a weak fiscal position heightens investors' concerns about sovereign credit risk, raises economy-wide borrowing cost, and reduces private domestic demand. We document empirically the relevance of the...
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作者：Afanasyeva, Elena; Guentner, Jochen
作者单位：Federal Reserve System - USA; Federal Reserve System Board of Governors; Johannes Kepler University Linz; Federal Reserve System - USA; Federal Reserve System Board of Governors
摘要：Do banks lend to riskier borrowers after a monetary expansion? We modify the classic costly state verification problem by introducing a risk-neutral monopolistic bank, which maximizes profits subject to borrowers' participation. While the bank can diversify idiosyncratic default risk, it bears the aggregate risk. In partial equilibrium, the bank prefers a higher leverage ratio of the borrower, when the profitability of lending increases, e.g. after a monetary expansion. This risk channel persi...
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作者：House, Christopher L.; Proebsting, Christian; Tesar, Linda L.
作者单位：University of Michigan System; University of Michigan; National Bureau of Economic Research; Swiss Federal Institutes of Technology Domain; Ecole Polytechnique Federale de Lausanne
摘要：Cross-country differences in austerity, defined as government purchases below forecast, account for 75% of the observed cross-sectional variation in GDP in advanced economies during 2010-2014. Statistically, austerity is associated with lower GDP, lower inflation and higher net exports. A multi-country DSGE model calibrated to 29 advanced economies generates effects of austerity consistent with the data. Counterfactuals suggest that eliminating austerity would have substantially reduced output...
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作者：Baqaee, David Rezza
作者单位：University of California System; University of California Los Angeles
摘要：Households' inflation expectations are more responsive to inflationary news than to disinflationary news, and this asymmetry in expectations can cause downward wage rigidity. Asymmetric expectations imply that monetary policy can have asymmetric effects on employment and wages. I microfound asymmetric household expectations using ambiguity aversion: households, who do not know the quality of their information, overweight inflationary news since it reduces their purchasing power, and underweigh...
