In this paper a stochastic dynamic general equilibrium (DGE) model with capital accumulation is augmented by sticky wages. Wages are set in a staggered way as in Taylor (1980) implying that the optimal wage will be set for two periods. Prices are also sticky since there are adjustments cost of prices as in Rotemberg (1982). It is confirmed that wage staggering has a higher potential to generate...

We study how fluctuations in money growth correlate with fluctuations in real and nominal output growth and inflation. We pick cycles from each time series that last 2 to 8 (business cycles) and 8 to 40 (longer-term cycles) years, using band-pass filters. We employ a data set from 1880 to 2001 for eleven countries, without gaps. Fluctuations in money growth do not play a systematic and importan...

An Empirical Study of the Relationships between CO2 Emissions, Economic Growth and Openness This paper investigates the existence of the environmental Kuznets curve (EKC) for carbon dioxide (CO2) emissions and its causal relationships with economic growth and openness by using time series data (1971-2006) from China (an emerging market), Korea (a newly industrialized country), and Japan (a deve...

Probably because of their interpretability and transparent nature, synthetic controls have become widely applied in empirical research economics the social sciences. This article aims to provide practical guidance researchers employing control methods. The starts with an overview introduction estimation. main sections discuss advantages framework as a design, describe settings where reliable es...

The successful pursuit of the objective of low inflation by central banks in recent decades has also delivered low variability of both inflation and output. At the same time, numerous financial and other "imbalances" (defined here as significant and sustained deviations from historical norms) have emerged. Should these imbalances revert to the mean, there could be significant effects on output ...

This paper estimates a structural VAR model of U.S. consumer and world commodity prices. An equiproportional long-run response of nominal price levels to amonetary shock yields identifying restrictions. Exogenous innovations tomonetary policy account for a sizable share of the co-movement of these series, including during episodes more commonly attributed to “supply shocks.” JEL Categories: C32...

This paper studies how the method of government debt financing affects the macroeconomic performance of the transforming Chinese economy. The investigation is conducted within the context of an endogenous growth model that incorporates the major institutional features of the Chinese economy. Using this framework, we evaluate the effects on the growth rate of output and inflation if the Chinese ...

e xchange rate is an important factor influencing price indices of exported goods of a country in different ways. imported intermediate commodity is one of the important ways by which the change in exchange rate affects price indices of the exported goods. using the input-output table of iran for the year 2001, this paper investigates the impact of exchange rate devaluation on price indices of ...

abstract: decentralization is a process in which local affairs are administrated by local authorities outside of activities of the central government. today, decentralization policy is considered as one of the ways that most countries adopted to improve public sector performance. in this paper using geometric analysis, innovation that this paper represents, an econometric model is considered to...

this study analyzes the contribution of the sectoral total factor productivity growth (tfpg) and the input's growth to the iran's economy sectors growth during 1345 -1383. the major findings show that the average contribution of tfp growth to non-oil output's growth during first, second and third development plans has been 39.5%, 12.2% and 24.8% respectively, amounting to (as est...