New directions for stochastic open economy models

  • 45 Pages
  • 0.14 MB
  • 414 Downloads
  • English
by
National Bureau of Economic Research , Cambridge, MA
Wages -- Econometric models., Monetary policy -- Econometric models., Stochastic anal
StatementMaurice Obstfeld, Kenneth Rogoff.
SeriesNBER working paper series -- no. 7313, Working paper series (National Bureau of Economic Research) -- working paper no. 7313.
ContributionsRogoff, Kenneth S., National Bureau of Economic Research.
Classifications
LC ClassificationsHB1 .W654 no. 7313, HD4909 .O28 1999
The Physical Object
Pagination45 p. ;
ID Numbers
Open LibraryOL22394492M

The paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal wages. Explicit solution of the wage-setting problem under uncertainty allows one to analyze the effects of the monetary regime on welfare, expected output, and the expected terms of Cited by: New directions for stochastic open economy models Maurice Obstfeld, Kenneth Rogoffa, b* aDepartment of Economics, Evans Hall [,University of California,Berkeley CA ,USA bDepartment of Economics,Harvard University Cambridge MA ,USA Received 12 January ; accepted 23 July Abstract.

New Directions for Stochastic Open Economy Models Maurice Obstfeld, Kenneth Rogoff. NBER Working Paper No. Issued in August NBER Program(s):International Finance and Macroeconomics, Monetary Economics The paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal by: New directions for stochastic open economy models.

Cambridge, MA: National Bureau of Economic Research, © (OCoLC) Material Type: Internet resource: Document Type: Book, Internet Resource: All Authors / Contributors: Maurice Obstfeld; Kenneth S Rogoff; National Bureau of. Request PDF | New Directions in Stochastic Open Economy Models | The paper develops a simple stochastic new open economy macroeconomic model based on.

New Directions for Stochastic Open Economy Models. Maurice Obstfeld and Kenneth Rogoff (). Center for International and Development Economics Research, Working Paper Series from Center for International and Development Economics Research, Institute for Business and Economic Research, UC Berkeley.

Abstract: The paper develops a simple stochastic new open economy macroeconomic model. Downloadable. The paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal wages.

Description New directions for stochastic open economy models FB2

Explicit solution of the wage-setting problem under uncertainty allows one to analyze the effects of the monetary regime on welfare, expected output, and the expected terms of trade. Despite the potential interplay between imperfections due to sticky wages and monopoly, the.

Obstfeld, Maurice, and Kenneth Rogoff. “New Directions for Stochastic Open Economy Models.” Journal of International Economics New Directions for Stochastic Open Economy Models. By Maurice Obstfeld and Kenneth Rogoff. Download PDF (0 MB) Abstract. The paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal wages.

Explicit solution of the wage-setting problem under uncertainty allows one to analyze the effects of the monetary. "New Directions for Stochastic Open Economy Models," International FinanceUniversity Library of Munich, Germany. Maurice Obstfeld and Kenneth Rogoff., "New Directions for New directions for stochastic open economy models book Open Economy Models," Center for International and Development Economics Research (CIDER) Working Papers C, University of California at Berkeley.

New Directions for Stochastic Open Economy Models. Maurice Obstfeld and Kenneth Rogoff. Authors registered in the RePEc Author Service: Maurice Obstfeld and Kenneth S Rogoff () No C, Center for International and Development Economics Research (CIDER) Working Papers from University of California at Berkeley.

"New Directions for Stochastic Open Economy Models" (with Kenneth Rogoff), () "Risk and Exchange Rates" (with Kenneth Rogoff), (February ) "EMU: Ready, or Not?" Figure 1, Figure 2, Figure 3 Figure 4, and Figure 5. The data for Figure 2 and the data for Figures 1, 4, and 5 are also downloadable as Quattro Pro files.

CiteSeerX - Document Details (Isaac Councill, Lee Giles, Pradeep Teregowda): The paper develops a simple stochastic new open economy macroeconomic model based on sticky nominal wages. Explicit solution of the wage-setting problem under uncertainty allows one to analyze the effects of the monetary regime on welfare, expected output, and the expected terms of trade.

The Brock-Mirman Model I With competitive and complete markets, the First and Second Welfare Theorems so equilibrium growth path is identical to the optimal growth path. But analysis is more involved and introduces new concepts.

Economy as baseline neoclassical growth model, but production technology now given by Y (t) = F (K (t),L(t),z (t)), (1). tion. Some new directions taken by the latest liter-ature on stochastic open economy modeling are described in the fourth section.

A final section presents some concluding remarks. THE REDUX MODEL The Baseline Model OR () is the study often considered as having initiated the literature on new open econo-my macroeconomics (see, for example.

The considerable amount of research in recent years on New Keynesian, open-economy models - models with nominal price rigidities and intertemporally maximizing agents - has yielded fresh insights for what Alan Blinder has called the "dark art" of making monetary policy.

The literature has made its greatest contributions in understanding the. Journal of Political Economy, (3) June, • Obstfeld, Maurice, and Kenneth Rogoff, (), Chap Foundations of International Macroeconomics, MIT Press.

• Obstfeld, Maurice and Kenneth Rogoff, (), "New Directions in Stochastic Open Economy Models," Journal of International Econom Also NBER WP.

Obstfeld & Rogoff (), "New Directions for Stochastic Open-Economy Models", Journal of International Economics Lane (), "The New Open Economy Macroeconomics: A Survey", Journal of International Economics Chari et. al (). Trend,” Journal of Political Economy. Uribe, M. and V. Yue. “Country Spreads and Emerging Countries: Who Drives Whom?” Journal of International Economics.

Obstfeld M., and K. Rogoff,“New Directions for Stochastic Open Economy Models,” Journal of International Economics. circumstances (for example, a one-sector model is a key part of the restriction). Applications Growth The Solow growth model is an important part of many more complicated models setups in modern macroeconomic analysis.

Its flrst and main use is that of understanding why output grows in the long run and what forms that growth takes. The models discussed thus far all feature incomplete asset markets.

Details New directions for stochastic open economy models EPUB

Section 5 presents a model of a small open economy with complete asset markets. Under complete asset markets, the marginal utility of consumption is proportional across countries. So one equilibrium condition states that Uc(ct)=αU∗(c∗. has spurred economists to look for new directions of research with success.

Open-economy dynamic stochastic general equilibrium (DSGE) models are clearly a major accomplishment from the theoretical perspective. The empirical literature has also shown why, by properly accounting for estimation error, exchange rate models may.

The mainstream dynamic stochastic general equilibrium (DSGE) approach was severely criticized by practitioners and policy makers because it failed to offer useful policy recommendations for the financial crisis as well as for the prolonged slumps in many countries after the crisis.

In the search for new directions in macroeconomic analysis. CONTENTS v Stochastic Calculus Introduction Course Mechanics † Requirements: Two exams, each 50% of grade, each covers half of material in class.

First exam: on Tuesday, March 12th. Second and final exam: on Tuesday, April 30th. The book includes cutting-edge research and unpublished data, including much of the author's own work.

New Directions for Stochastic Open Economy Models. The paper develops a simple. Books; About; Maurice Obstfeld's research papers prior to Perspectives from the New Open Economy Macroeconomics" June "Saving, Investment, and Gold: A Reassessment of Historical Current Account Data" "New Directions for Stochastic Open Economy Models" with Kenneth Rogoff, "Risk and Exchange Rates".

Combining theoretical models and data in ways unimaginable just a few years ago, open economy macroeconomics has experienced enormous growth over the past several decades.

This rigorous and self-contained textbook brings graduate students, scholars, and policymakers to the research frontier and provides the tools and context necessary for new. Purchase Stochastic Optimization Models in Finance - 1st Edition. Print Book & E-Book.

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ISBNWe examine pricing policy for a monopolist facing uncertain demand in a market characterized by dynamics on the demand side (such as diffusion or saturation effects) and/or on the cost side (experi. This book presents a radically new approach to problems of evaluating and optimizing the performance of continuous-time stochastic systems.

This approach is based on the use of a family of Markov processes called Piecewise-Deterministic Processes (PDPs) as a general class of stochastic system models. A PDP is a Markov process that follows deterministic trajectories between random.

An open economy New Keynesian policy model for Australia is estimated in this study. We investigate how important external shocks are as a source of macroeconomic fluctuations when compared to domestic ones.

The results of our analysis suggest that the Australian business cycle and domestic inflation are most affected by domestic demand and supply shocks, respectively.Stochastic processes have found increasing applications in modern economic models.

In earlier times they were mainly used as additive errors or noise in a deterministic model without contributing very much to our basic understanding of the model structure, except perhaps hleping in providing a satisfactory basis of econometric estimation, e.g., the use of Cochrane-Orcutt estimation in auto.The pursuit of more efficient simulation algorithms for complex Markovian models, or algorithms for computation of optimal policies for controlled Markov models, has opened new directions for research on Markov chains.

As a result, new applications have emerged across a wide range of topics including optimisation, statistics, and economics.