Increase output in standard new-keynesian dsge model

Assignment Help Business Economics

Reference no: EM13838545

Does a temporary increase in government expenditure increase output in the standard new-Keynesian DSGE model? Is it possible to draw any intuitive parallels between the impact of government expenditure in these models and in the IS-LM model?

Reference no: EM13838545

Questions Cloud

Classic introduction to non-cooperative game theory : In the classic introduction to non-cooperative game theory, the mixed strategy for a player is taught as a distribution over strategy space for the player. The distribution essentially gives us the probabilities (say, discrete strategy set) with whic..

Business cycles based on the idea of schumpeterian growth : The basic idea of Schumpeterian Business Cycles is that new technologies require creative destruction but will yield positive growth. These two opposing forces have impacts onto the real economy at different times, which will create fluctuations arou..

Credit frictions themselves as source of business cycles : Many papers look at the impact of credit frictions onto business cycles, and they almost unambiguously find that credit frictions work as an amplification mechanism of other shocks. A lot of these models (in the tradition of Kiyotaki and Moore) have ..

According to trabant and uhlig-laffer curve for consumption : According to Trabant and Uhlig (2009), the Laffer curve for consumption has no peak. As far as I can make out, the argument is based on the fact that money extracted by taxing consumption ends up back with consumers and then gets taxed again. However..

Increase output in standard new-keynesian dsge model : Does a temporary increase in government expenditure increase output in the standard new-Keynesian DSGE model? Is it possible to draw any intuitive parallels between the impact of government expenditure in these models and in the IS-LM model?

Permanent fiscal expansion will not affect output : In Krugman and Obstfeld's International Economics, 8e, Chapter 16, an involved argument is given showing that a permanent fiscal expansion will not affect output even in the short run. It seems to me that this is a saddle point stability argument in ..

Hold under such asymmetric restrictions on asset holding : To derive the uncovered interest parity (UIP) condition we assume, among other things, that there is free movement of capital across countries. Is there a variant of the UIP that we can expect to hold (given the other assumptions) under such asymmetr..

Signalling games-perfect sequential and divine equilibrium : In signalling games, it seems that the Cho Kreps refinement (intuitive criterion) is the go to refinement for eliminating bad sequential equilibrium. Divine equilibrium and perfect sequential equilibrium are also interesting refinements though. Are t..

Use in influencing the commercial banking system : What are the various ways in which the Federal Reserve influences the economy? What important tools do they use in influencing the commercial banking system?

User Account

All Pages