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We study Ramsey-optimal fiscal policy in an economy in which product varieties are the result of forward-looking investment decisions by firms. There are two main results. First, depending on the particular form of variety aggregation in preferences, firms' dividend payments may be either subsidized or taxed in the long run. This policy balances monopoly(More)
This paper estimates a high-frequency New Keynesian Phillips curve via the Generalized Method of Moments. Allowing for higher-than-usual frequencies strongly mitigates the well-known problems of small-sample bias and structural breaks. Applying a daily frequency allows us to obtain estimates for the Calvo parameter of nominal rigidity over a very short(More)
We study Ramsey-optimal fiscal policy in an economy in which product varieties are the result of forward-looking investment decisions by firms. There are two main results. First, depending on the particular form of variety aggregation in preferences, firms' dividend payments may be either subsidized or taxed in the long run. This policy balances monopoly(More)
  • Helge Berger, Pär Österholm, Jan Wallander 's, Tom Hedelius, Foundation Katrin Assenmacher-Wesche, Martin Cihak +3 others
  • 2007
We use a mean-adjusted Bayesian VAR model as an out-of-sample forecasting tool to test whether money growth Granger-causes inflation in the euro area. Based on data from 1970 to 2006 and forecasting horizons of up to 12 quarters, there is surprisingly strong evidence that including money improves forecasting accuracy. The results are very robust with regard(More)
Common purslane (Portulaca oleracea L.) is a summer annual with wide geographic and environmental distribution. Purslane is typically regarded as a weed in North America, but it is consumed as a vegetable in many parts of the world. One of the characteristics that make purslane difficult to control as a weed is its ability to vegetatively reproduce. Severed(More)
We provide a systematic analysis of the transmission mechanisms of fiscal consolidation via various fiscal instruments in a medium-scale dynamic general equilibrium model. Our analysis shows that the following three aspects have a large impact on the quantitative macroeconomic effects of fiscal consolidation. First, the effects on output depend crucially on(More)
I develop a model of endogenous economic growth and search and matching frictions in the labor market. I study the effect of trade liberalization between two identical economies on unemployment. I solve for two versions of the growth model, the first one where trade liberalization has only a temporary effect on growth, a semi-endogenous growth model. In the(More)
The natural interest rate is of great relevance to central banks, but it is difficult to measure. We show that in a standard microfounded monetary model, the natural interest rate co-moves with a transformation of money demand that can be computed from actual data. The optimizing central bank that cannot observe the natural interest rate takes advantage of(More)