Price indexation, habit formation, and the Generalized Taylor Principle
نویسندگان
چکیده
منابع مشابه
Habit Formation and the Gains from Price Stability∗
A counter-intuitive result from consumer theory is that consumers facing stable prices will benefit from a mean-preserving spread of those prices (Waugh 1944). This paper explores a new explanation for why the common intuition that price volatility is undesirable may be correct: the presence of habit formation in consumption. If prices are fluctuating, and preferences depend on past consumption...
متن کاملEmpirical Evidence on the Generalized Taylor Principle # 334
During fi nancial crises central banks usually decrease interest rates in order to reduce fi nancial uncertainty. This behavior increases infl ation risk. The trade-off between infl ation and uncertainty stabilization can be modeled by the generalized Taylor rule, which describes infl ation sensitivity as a function of fi nancial uncertainty instead of a constant parameter. Based on the GMM-est...
متن کاملHabit formation
Habits, both good ones and bad ones, are pervasive in animal behavior. Important frameworks have been developed to understand habits through psychological and neurobiological studies. This work has given us a rich understanding of brain networks that promote habits, and has also helped us to understand what constitutes a habitual behavior as opposed to a behavior that is more flexible and prosp...
متن کاملformation and evolution of regional organizations: the case study of the economic cooperation organization (eco)
abstract because of the many geopolitical, geo economical and geo strategically potentials and communicational capabilities of eco region, members can expand the convergence and the integration in base of this organization that have important impact on members development and expanding peace in international and regional level. based on quality analyzing of library findings and experts interv...
15 صفحه اولAltruistic Behavior and Habit Formation
Altruistic Behavior and Habit Formation This paper examines whether altruistic behavior is habit forming. We take advantage of a data set that includes a rich set of information concerning individuals’ donations of cash and time as adults as well as information about whether they were involved with charitable activities when they were young. The basic premise is that if altruistic behavior when...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Journal of Economic Dynamics and Control
سال: 2014
ISSN: 0165-1889
DOI: 10.1016/j.jedc.2014.09.022