The correlation between persistent changes in the markup in one sector of an economy and the inflation rate is quantified in a 2-sector dynamic general equilibrium model. How this relationship is affected by monetary policy is also studied. We find that the correlation is in general positive under an exogenous money growth rule as well as under an inflation targeting rule. That is, a decrease o...

In this paper, we examine the short and long run dynamic relationship between inflation (consumer price index) of gold in Turkey by using monthly data over period 2008m10-2021m04. The finding shows there is no cointegration consumer index Turkey. However, results demonstrate that CPI does Granger cause but dose not CPI. Those are also confirmed short-run S-model long-run properties accumulated ...

We present a hierarchical architecture based on recurrent neural networks for predicting disaggregated inflation components of the Consumer Price Index (CPI). While majority existing research is focused headline inflation, many economic and financial institutions are interested in its partial components. To this end, we developed novel Hierarchical Recurrent Neural Network (HRNN) model, which u...

T his study investigates the factors affecting the demand for new residential buildings in urban areas of Iran during 1976-2010. The demand function for new residential buildings in urban areas was estimated and then the existence of a long-run relationship among variables of this function was studied using the Bounds testing of the Autoregressive Distributed Lag Co-integration procedure. The t...

One important reason for imposing tolls on roadways is to help reduce traffic congestion by giving an incentive to drivers to carpool, drive at non-toll times, or to seek alternate routes. While there are correlations between traffic volumes and toll rates, many other factors also influence driver decisions, including gas prices, availability of alternate routes, road construction, family incom...

This paper examines monetary and fiscal policy through the estimation of a New-Keynesian dynamic general equilibrium model for Iran’s economy. In this New-Keynesian dynamic general equilibrium model, the consumers encounter the liquidity constraint and the firms face sticky prices, while they are changing them. In the model presented, a role is considered for both government spending and taxati...

Money demand specifications exhibits instability, especially for long spans of data. This paper reconsiders the welfare cost of inflation for the US economy using a flexible timevarying cointegration methodology to estimate the money demand function. We find evidence that the time-varying cointegration estimation provides a better fit of the actual data than a timeinvariant estimation and that ...

Abstract This article develops a new model of business cycles. The is economical in that it solved with an aggregate demand–aggregate supply diagram, and the effects shocks policies are obtained by comparative statics. builds on two unconventional assumptions. First, producers consumers meet through matching function. Thus, features unemployment, which fluctuates response to demand shocks. Seco...

We find that the positive relation between aggregate accruals and one-year-ahead market returns documented in Hirshleifer, Hou and Teoh [2009] is driven by discretionary accruals but not normal accruals. The return forecasting power of aggregate discretionary accruals is robust to choices of sample periods, return measurements, estimation methods, business condition and risk premium proxies, an...