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A persistent criticism of general equilibrium models of monetary policy which incorporate nominal inertia in the form of the New Keynesian Phillips Curve (NKPC) is that they fail to capture the extent of inflation inertia in the data. In this paper we derive a general equilibrium model based on optimising behaviour, but which also implies a data consistent(More)
The empirical literature on central banking has found measures of central bank independence/conservatism to be negatively correlated with inflation and inflation variance across countries. But the crosscountry approach has been criticised for its focus on policy outcomes instead of policies, and for the unsystematic conflation of the concepts of(More)
We study the importance of uncertainty and public finance to the welfare ranking of three environmental policy instruments: pollution taxes, pollution permits and Kyoto-like numerical rules for emissions. The setup is the basic stochastic neoclassical growth model augmented with the assumptions that pollution occurs as a by-product of output produced and(More)
To test the hypothesis that causalgia is a reflex sympathetic dystrophy with focal sympathetic hyperactivity in the painful area, we studied skin conductance, temperature, and a radiometric index of blood flow in 10 patients and 10 controls. Skin conductance was significantly higher, and both skin temperature and blood flow index were significantly lower in(More)
The evidence on the excessive smoothness and sensitivity of consumption with respect to income is sufficiently overwhelming to refute the rational expectations version of the permanent income hypothesis known as the random walk model. This paper proposes an alternative model which (i) is compatible with the " excess smoothness " and the " excess sensitivity(More)
This paper develops a generalised version of the life-cycle model in which consumers' preferences are defined over components of consumption and are affected by the level of public expenditure on goods and services. The model implies that the crowding out of private consumption could in fact be a direct demand side phenomenon caused by the way preferences(More)
All rights reserved. Reproduction for educational and non-commercial purposes is permitted provided that the source is acknowledged. participants of the 2002 " WTO, China and the Asian Economies " conference and the 2003 " Area Conference On Macro, Money & International Finance " for their comments and suggestions. The financial support of faculty research(More)
In contrast to much recent work regarding the causes of European unemployment , in this paper, we emphasise the importance of capital accumulation. But unlike the few previous studies which have examined the relationship between capital stock and unemployment, we argue that what matters for the evolution of employment [and the unemployment rate] is not the(More)