Abstract This paper analyses determinants of household savings in a model based on an extension the disequilibrium theory. These extensions follow from life-cycle, permanent-income and Ricardian-equivalence theories. Based panel data 20 countries period 2000–2020, fixed-effect least squares estimation procedures are used. The analysis provides evidence that negative interest rates lead to stati...

This paper explores the implications on trade and wage inequality of introducing financial capital or credit in standard Ricardian model production, where a given amount start-up is used to employ sector specific skilled unskilled workers following Wage Fund approach classical economists. Thus, we have Specific Factor (SF) structure Jones (1971) new (NRM) with two types labour. With an entirely...

This article studies under which conditions interest rate rules “à la Taylor (1993)” lead to price determinacy. We scrutinize notably two famous results, which are standard in the traditional “Ricardian” model with a single dynasty of consumers: (1) a pure interest rate peg leads to nominal price indeterminacy; (2) a strong reaction (usually more than one for one) of nominal interest rates to i...

The fiscal theory of the price level asserts that the price level is determined by the ratio of outstanding public nominal debt into the present value of real primary budget surpluses of the government. We here argue that price determinacy, in general, fails when at least part of the public debt takes the form of securities of infinite maturity. Indeed, price determinacy requires non-Ricardian ...

This paper studies the determinacy properties of monetary and fiscal policy rules in a small-scale New Keynesian model. We modify the standard model in two ways. First, we allow positive public debt in the steady state as in Leeper [Journal of Monetary Economics 27, 129–147 (1991)]. Second, we add rule-of-thumb consumers as in Bilbiie [Journal of Economic Theory 140, 162–196 (2008)]. Leeper stu...

Your use of the JSTOR archive indicates your acceptance of JSTOR's Terms and Conditions of Use, available at http://www.jstor.org/about/terms.html. JSTOR's Terms and Conditions of Use provides, in part, that unless you have obtained prior permission, you may not download an entire issue of a journal or multiple copies of articles, and you may use content in the JSTOR archive only for your perso...