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We develop a closed economy model to study the interactions among sovereign risk premia, fiscal limits, and fiscal policy. The stochastic fiscal limit, which measures the ability and willingness of the government to service its debt, arises endogenously from dynamic Laffer curve. The distribution of fiscal limits is country-specific, depending on the size(More)
We study the properties of the zero lower bound model in Eggertson andWoodford (2003) (EW). EW’s analysis is based on the equilibrium conditions after linearization. Working with the actual nonlinear equilibrium conditions and consistent with Braun, Körber and Waki (2012) and Mertens and Ravn (2011), we …nd the existence of equilibria that are not visible(More)
Biobanks have recently gained great significance for research and personalised medicine, being recognised as a crucial infrastructure. At the same time, the widely varied practices in biobanking may also pose a barrier to cross-border research and collaboration by limiting access to samples and data. Nevertheless, the extent of the actual activities and the(More)
This study overturns the conclusion of a 1990 study by David Humphrey and Allen Berger, which found that check float is responsible for the popularity of checks despite their high resource cost compared to electronic payment instruments. The new study examines recent data on the costs of checks and automated clearinghouse (ACH) payments. It finds that the(More)
The co-movement of output across the sector producing non-durables (that is, non-durable goods and services) and the sector producing durables is well-established in the monetary business-cycle literature. However, standard sticky-price models that incorporate sectoral heterogeneity in price stickiness (that is, sticky non-durables prices and flexible(More)
Poor heath, large acute and long-term care medical expenses and spousal death are significant drivers of impoverishment among retirees. We document these facts and build a rich overlapping generations model that reproduces them. We use the model to assess the incentive and welfare effects of U.S. Social Security and means-tested social insurance programs,(More)
This article describes a new way to use monthly data to improve the national forecasts of quarterly economic models. This new method combines the forecasts of a monthly model with those of a quarterly model using weights that maximize forecasting accuracy. While none of the method’s steps is new, it is the first method to include all of them. It is also the(More)
  • Martin Kliem, Alexander Kriwoluzky, +9 authors Christian Matthes
  • 2013
We estimate the low-frequency relationship between fiscal deficits and inflation and pay special attention to its potential time variation by estimating a time-varying VAR model for U.S. data from 1900 to 2011. We find the strongest relationship neither in times of crisis nor in times of high public deficits, but from the mid-1960s up to 1980. Our results(More)
Do learning models of expectations formation capture actual expectations? In this study we address this question by using data from the Survey of Professional Forecasters in the estimation of a dynamic stochastic general equilibrium model under learning. Exploiting the moments of this data allows us to identify the parameters of the model better,(More)
Japan has now experienced over a decade of slow growth and deflation. This period has also been associated with protracted problems in the banking sector. A wide range of measures have been tried in to restore health in the banking sector including recapitalization, the extension of 100% guarantees to all deposits, and central bank purchases of shares held(More)