Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Economic Theory
Essays In New Keynesian Monetary Policy, Tzu-Hao Huang
Essays In New Keynesian Monetary Policy, Tzu-Hao Huang
Dissertations, Theses, and Capstone Projects
The dissertation consists of three Chapters. I consider New Keynesian models which involve tradeoffs between output gap and inflation variances. Such policy strategy is often referred to as flexible inflation targeting rules (e.g., Lars Svensson 2011, pp.1238-95). Taylor rules, in general, have the symbolic expression 𝑖t=𝜑x𝑥t+𝜑𝜋𝜋t+𝜑g𝑔t, where 𝑖t is the nominal interest rate at period t, 𝑥t is the target variable output gap at period t, 𝜋t is the target variable inflation rate at period t, 𝑔t is realized shock …
Essays On Wealth Inequality And Asset Pricing, Georgios Koimisis
Essays On Wealth Inequality And Asset Pricing, Georgios Koimisis
Dissertations, Theses, and Capstone Projects
Economic and financial theories are often found to be in conflict with empirical evidence, suggesting revisions and elaborations of existing models. There are usually many revisions proposed in response to these "puzzles", but often the true resolution may be a factor not yet realized. This dissertation consists of three chapters and contributes to the explanation of a persistent and significant anomaly, the equity premium puzzle, by taking into account the implications of wealth inequality on consumer preferences and, consequently, on asset prices.
The first chapter examines how wealth inequality affects asset prices in a complete market setting. Wealth inequality is …