作者：Andreasen, Martin M.; Kronborg, Anders F.
作者单位：Aarhus University; CREATES; Danish Finance Institute
摘要：We introduce the extended perturbation method, which improves the accuracy of standard perturbation by reducing approximation errors under certainty equivalence. For the New Keynesian model with Calvo pricing, extended perturbation is more accurate than standard perturbation, which implies explosive dynamics because it omits the upper bound on inflation implied by this model. In contrast, extended perturbation enforces this bound and generates stable dynamics. We also show that extended pertur...
作者：Lewbel, Arthur; Norris, Samuel; Pendakur, Krishna; Qu, Xi
作者单位：Boston College; University of British Columbia; Simon Fraser University; Shanghai Jiao Tong University
摘要：We construct a peer effects model where mean expenditures of consumers in one's peer group affect utility through perceived consumption needs. We provide a novel method for obtaining identification in social interactions models like ours, using ordinary survey data, where very few members of each peer group are observed. We implement the model using standard household-level consumer expenditure survey microdata from India. We find that each additional rupee spent by one's peers increases perce...
