So far the literature on DSGE models with energy price shocks uses energy on the production side only. In these models, energy shocks are responsible for only a negligible share of output fluctuations. We study the robustness of this finding. The aim of our paper is to model the response of household behavior to energy shocks in more detail as in the existing literature. Specifically, in additi...

this paper represents a theoretical model from which the supply function for a durable goods is derived. it turns out that consumer at the equilibrium condition equates its user cost with the marginal value of services received by using an additional unit of durable goods. the stock price is obtained from this condition. in addition, at the equilbrium condition for producer, the stock price is ...

This article analyzes the optimal deductible level of insurance on durable consumption goods with a positive premium loading in a continuous-time economy. Assuming financial assets and durable consumption goods can be traded without transaction costs, we provide an explicit solution for the optimal insurance coverage of durable consumption goods together with optimal trading strategies for the ...

Durable goods are an important component of the business cycle. Equilibrium models of durable goods markets are made difficult by the lumpy nature of individual purchases. We show that a straight forward approximation of the distribution of durable goods holdings gives rise to a tractable equilibrium model. We analyze the case of competition as well as that of a monopoly producer. J.E.L. Classi...

â â â â  reza roshan [1] â  department of economics, university of sistan and baluchestan , iran â  mosayeb pahlavani â  department of economics, university of sistan and baluchestan, iran â  mohammad nabi shahyaki tash â  department of economics, university of sistan and baluchestan, iran â  â â â  abstract â  consumption is the principal feature of iran’s gross national production. therefor...

In this paper we examine the relationship between advertising spending and perceived product quality. The questions we ask are: Does a product's advertising spending in ̄uence consumers' perceptions of its quality? If so, does the effect remain even after accounting for objective quality, price and market share? Does knowledge about objective quality, from Consumer Reports or usage experience, a...

We consider an overlapping generations model with a Durable Local Public Good (DLPG). We establish a Tiebout Theorem (equilibrium exists and is first best) as well as a Second Welfare Theorem in this dynamic DLPG economy. We define conditions under which local provision of durable public goods results in the full internalization of the intergenerational spillovers that durability entails. In co...

One of the main causes behind the trade collapse of 2008-09 was a significant fall in the demand for durable goods. This paper develops a small country, overlapping generations model of international trade in which goods durability gives rise to a more than proportional fall in trade volumes, as observed in 2008-09. The model has three goods two durable, traded goods and one non-durable, non-tr...

T use of a durable good is limited by both its physical life and usable life. For example, an electric-car battery can last for five years (physical life) or 100,000 miles (usable life), whichever comes first. We propose a framework for examining how a profit-maximizing firm might choose the usable life, physical life, and selling price of a durable good. The proposed framework considers differ...