Search results for "jel:C11"

showing 2 items of 2 documents

A Naïve Sticky Information Model of Households’ Inflation Expectations

2009

This paper provides a simple epidemiology model where households, when forming their inflation expectations, rationally adopt the past release of inflation with certain probability rather than the forward-looking newspaper forecast as suggested in Carroll [2003, Macroeconomic Expectations of Households and Professional Forecasters, Quarterly Journal of Economics, 118, 269-298]. The posterior model probabilities based on the Michigan survey data strongly support the proposed model. We also extend the agent-based epidemiology model by deriving for it a simple adaptation, which is suitable for estimation. Our results show that this model is able to capture the heterogeneity in households’ expe…

InflationEstimationEconomics and Econometricsjel:C82Control and OptimizationInflation expectations; heterogeneous expectations; survey expectations; sticky information; Bayesian analysisjel:D84Applied Mathematicsmedia_common.quotation_subjectjel:C5305 social sciencesBayesian probabilityjel:E31jel:C11DeflationSticky information0502 economics and businessEconometricsEconomicsSurvey data collection050207 economicsSimulation methods050205 econometrics media_common
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Spain in the euro: a general equilibrium analysis

2010

Bayesian dynamic stochastic general equilibrium (DSGE) models combine microeconomic behavioural foundations with a full-system Bayesian likelihood estimation approach using key macro-economic variables. Because of the usefulness of this class ofmodels for addressing questions regarding the impact and consequences of alternative monetary policies they are nowadays widely used for forecasting and policy analysis at central banks and other institutions. In this paper we provide a brief description of the two main aggregate euro area models at the ECB. Both models share a common core but their detailed specification differs reflecting their specific focus and use. The New Area Wide Model (NAWM)…

MacroeconomicsDynamisches GleichgewichtInflationGeneral equilibrium theorycentral banksmedia_common.quotation_subjectmonetary policyWageMonetary economicsDSGE modelsE50Rest (finance)ddc:330EconomicsDynamic stochastic general equilibriumProductivityC5DSGE model monetary union growth and inflation differentials Bayesian inferenceE32Spanienmedia_commonWirtschaftswachstumEurojel:C51jel:C11Inflationjel:E17EurozoneEuropean monetary unionGeneral Economics Econometrics and FinanceB4Public finance
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