We study the ta( tonnement process in an exchange economy with three commodities and three agents. We argue that for the multiplicative ta( tonnement process the simplex is a natural normalization rule. We analyse the in#uence of symmetry in preferences and endowments on the dynamics of the ta( tonnement process. Depending on this symmetry there are di!erent bifurcation routes to chaos. In part...

This paper performs multiple-break unit root tests on the data of China’s national and sectoral output and labour productivity, with finite-sample critical values bootstrapped through Monte Carlo simulations. We find strong evidence against the unit-root hypothesis in favour of the segmentedtrend-stationarity alternative. Based on breaking trend functions, the steady-state and transitional grow...

This note presents a detailed formal derivation of the equilibrium conditions of a variation of the deep habit model developed by Ravn, Schmitt-Grohé, and Uribe (2003). In the present note, the single-period utility function depends on the quasi ratio of current consumption to the stock of habit of each variety, whereas in the original deep habit model it depends on the quasi difference of thes...

The effects on ex ante optima of a lag in seeing monetary realizations are studied using a matching model of money. The main new ingredient in the model is meetings in which producers have more information than consumers. A consequence is that increases in the amount of money that occur with small enough probability can have negative impact effects on output, because it is optimal to shut down ...

Labour productivity distribution (dispersion) is studied both theoretically and empirically. Superstatistics is presented as a natural theoretical framework for productivity. The demand index κ is proposed within this framework as a new business index. Japanese productivity data covering small-to-medium to large firms from 1996 to 2006 is analyzed and the power-law for both firms and workers is...

Implementing a static PSD reduction of the PLT transmission spectrum in the downstream frequency bands of VDSL perhaps as an Australian amendment to EN50561. The most common PLT devices on sale in Australia are of Qualcomm Powerline AV2 style chipset and have an uploadable prescaler mask for such spectral shaping purposes. CTI is considering testing the PLT data throughput performance reduction...

This paper extends the standard New Keynesian model by incorporating labor adjustment costs and overtime work. I show that labor frictions help reconcile the frequent price changes found in the microdata with the degree of sluggishness in inflation adjustment to output changes at the macro level. The introduction of labor frictions affects the dynamic behavior of economic variables (particularl...

In Italy, as in many other countries, the years immediately after 1929 were characterized by a major slowdown in economic activity. We argue that the depth and duration of the crisis cannot be explained solely by productivity shocks. We present a model in which trade restrictions together with wage rigidities produce a significant slowdown in economic activity. The model is also consistent with...

Previous work by has shown that lumpy investment models well characterize individual expenditures on durables, in particular automobiles. In that class of models, a higher level of uncertainty generally implies that the household should tolerate a larger imbalance between the actual stock of the durable and the target stock before closing it by buying and/or selling. Then, if the level of uncer...

Supply-side policies can play a role in fighting a low aggregate demand that traps an economy at the zero lower bound (ZLB) of nominal interest rates. Reductions in mark-ups or future increases in productivity triggered by supply-side policies generate a wealth effect that pulls current consumption and output up. Since the economy is at the ZLB, increases in interest rates do not undo this weal...