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Articles 1 - 8 of 8
Full-Text Articles in Macroeconomics
A Piece Of The Puzzle: Can Behavioral Insights Help Understand Currency Returns?, Samuel D. Russell
A Piece Of The Puzzle: Can Behavioral Insights Help Understand Currency Returns?, Samuel D. Russell
Senior Theses and Projects
This paper finds further evidence using a Cointegrated Vector Autoregression to support claims against the Uncovered Interest Rate Parity (UIP) ex post, referred to as the Forward Discount Anomaly (Fama, 1984). This anomaly suggests predictable profits simply from investing in a country with a higher interest rate. Potential explanations could be attributed to risk or deviations from the rational expectations hypothesis. UIP ex ante is tested using survey data. These results indicate a time-‐ varying risk premium. Further it is found that this premium is related to the gap between the exchange rate and Purchasing-‐Power-‐Parity value. Additionally it is determined …
A Theory Of Aggregate Consumption, Yun K. Kim, Mark Setterfield, Yuan Mei
A Theory Of Aggregate Consumption, Yun K. Kim, Mark Setterfield, Yuan Mei
Research Collection School Of Economics
We develop a Keynesian model of aggregate consumption. Our theory emphasizes the importance of the relative income hypothesis and debt finance for understanding household consumption behavior. It is shown that particular importance attaches to how net debtor households service their debts, and that the treatment of debt-servicing commitments as a substitute for savings by these households creates the potential for 'sudden stops' in consumption spending (and hence aggregate demand).
Game-Theoretic Foundations Of Monetary Equilibrium, Gabriele Camera, Alessandro Gioffré
Game-Theoretic Foundations Of Monetary Equilibrium, Gabriele Camera, Alessandro Gioffré
Economics Faculty Articles and Research
According to theory, money supports trade in a world without enforcement and, in particular, in large societies, where gift-exchange is unsustainable. It is demonstrated that, in fact, monetary equilibrium breaks down in the absence of adequate enforcement institutions and it collapses as societies that lack external enforcement grow large. This unique result is derived by unveiling the existence of a tacit enforcement assumption in the literature that explains the advantages from monetary exchange, and by integrating monetary theory with the theory of repeated games and social norms.
The Bedridden Queen Money!, John Samuel Cyrus Mr
The Bedridden Queen Money!, John Samuel Cyrus Mr
John Samuel Cyrus Mr
During the past few decades, macro-economic activities had been rallied around glamorous industrial and technology oriented service sectors. Recent recession that began in 2008 is still continuing and the little improvement in 2009 was nothing but the fluctuation in the ICU monitor, which was connected to the bedridden queen Money. Many nations GDP growth rate has been continually falling and unemployment rates are continually rising. The American economy is in a complete mess, no remedies are found yet for European economic sovereign debt crisis, and the Asian economy fast fading due to India’s low GDP and the slide in Rupee; …
Food Imports Under Foreign Exchange Constraints In The Cfa’S Franc Zone Of Sub-Saharan Africa (Ssa), Seydina Ousmane Sene
Food Imports Under Foreign Exchange Constraints In The Cfa’S Franc Zone Of Sub-Saharan Africa (Ssa), Seydina Ousmane Sene
Theses and Dissertations--Agricultural Economics
To respond to the high imported food prices in their domestic markets, net food importing countries in the Communauté Financière Africaine (CFA) zone[1] are adjusting their import tariffs and homologate domestic prices of imported commodities such as rice, wheat, maize, and sugar. This research uses a multivariate specification of error correction model (VECM) of estimation to investigate the link between food imports, world price index of rice, wheat, maize and sugar, real effective exchange rates, domestic food production, GDP, and trade openness in the short and long run. The data are on each homogenous commodity from 1969 to 2012. …
Understanding The Distributional Impact Of Long-Run Inflation, Gabriele Camera, Yili Chen
Understanding The Distributional Impact Of Long-Run Inflation, Gabriele Camera, Yili Chen
Economics Faculty Articles and Research
The impact of fully anticipated inflation is systematically studied in heterogeneous agent economies with an endogenous labor supply and portfolio choices. In stationary equilibrium, inflation nonlinearly alters the endogenous distributions of income, wealth, and consumption. Small departures from zero inflation have the strongest impact. Three features determine how inflation impacts distributions and welfare: financial structure, shock persistence, and labor supply elasticity. When agents can self-insure only with money, inflation reduces wealth inequality but may raise consumption inequality. Otherwise, inflation reduces consumption inequality but may raise wealth inequality. Given persistent shocks and an inelastic labor supply, inflation may raise average welfare. …
The Coordination Value Of Monetary Exchange: Experimental Evidence, Gabriele Camera, Marco Casari
The Coordination Value Of Monetary Exchange: Experimental Evidence, Gabriele Camera, Marco Casari
Economics Faculty Articles and Research
What institutions can sustain cooperation in groups of strangers? Here we study the role of monetary systems. In an experiment, subjects sometimes needed help and sometimes could incur a cost to help an anonymous counterpart. In the absence of money, the intertemporal exchange of help, which could be supported by a norm of community punishment of defectors, did not emerge. Introducing intrinsically worthless tokens substantially altered patterns of behavior. Monetary trade emerged, which increased predictability of play and promoted cooperation when strangers could trade help for a token.
Economic Change And Evolutionary Perspectives., Mario Pianta
Economic Change And Evolutionary Perspectives., Mario Pianta
Mario Pianta
Economic studies with an evolutionary perspective have put the process of change at the centre of the analysis - replacing equilibrium views of economic activity – and have generally focused on the two mechanisms of variety generation – provided by innovation - and selection – provided by market processes, leading to a prevalence of microeconomic investigations. Recent developments in evolutionary biology have emphasised the equally important role of cooperation; cooperative economic behaviour is, in fact, as important as market competition for understanding macroeconomic processes, the role of institutions and public policies, opening up new directions for research. This interdisciplinary discussion …