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This paper revisits the macroeconomic e¤ects of monetary policies in the neoclassical growth model, when incomplete markets and idiosyncratic income shocks are introduced. In the benchmark complete markets model without borrowing constraints, a permanent increase in money growth rate has no long-run e¤ect on capital accumulation and output, but only on(More)
How do fluctuations in households' precautionary wealth contribute to the propagation of aggregate shocks? In this paper, we attempt to answer this question by formulating and estimating a tractable structural macroeconometric model of the business cycle with nominal frictions, unemployment and incomplete insurance against unemployment risk. We argue that,(More)
Suggested running title: "Sunspots and predictable returns" An earlier version of this paper bene…ted from comments by seminar participants at the University of Paris 1, the University of Paris 10, CEPREMAP and Ente L. Einaudi. I wish to thank an anonymous Associate Editor whose highly valuable comments led to the present form of this paper. Abstract This(More)
JEL classification: E31 E52 G12 Keywords: Monetary policy Asset prices New Keynesian general equilibrium model a b s t r a c t Empirical literature documents that unexpected changes in the nominal interest rates have a significant effect on real stock prices: a 100-basis point increase in the nominal interest rate is associated with an immediate decrease in(More)
Treatment of Class II malocclusion during the mixed dentition may sometimes require upper molar distalization. To achieve this, many devices have been suggested. The purpose of this article is to classify them and to point out their effects on the dentition and upon skeletal structures.
How different have the role played by the financial sector during the double-dip recession been from historical patterns ? Using regime-switching models, I reach two main answers. First, the experience since the recession is the result of sporadic changes in the systematic and non-systematic behavior of financial system. More generally, changes in(More)
The value of land in the balance sheet of French firms correlates positively with their hiring and investment flows. To explore the relationship between these variables, we develop a macroeconomic model with firms that are subject to both credit and labor market frictions. The value of collateral is driven by the forward-looking dynamics of the land price,(More)
  • Tiago V. V. Cavalcantiy, Chryssi Giannitsarouz, +13 authors Flavio Toxvaerd
  • 2010
We study how social structures a¤ect the dynamics of human capital , growth and inequality. We investigate how societies that are identical in terms of economic primitives, such as preferences, technology and endowment, can have di¤er-ent equilibrium dynamics. We do this by explicitly embedding networks that resemble social structures into an otherwise(More)
We construct a general equilibrium model with incomplete markets and borrowing constraints , in order to study the term structure of real interest rates. Agents are subject to both aggregate and idiosyncratic income shocks, which latter may force them into early portfolio liquidation whilst in recession. We derive a closed-form equilibrium with limited(More)