Subir Chattopadhyay

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This paper uses an overlapping generations model to analyze monetary policy in a two-country model with asymmetric shocks. Agents insure against risk through the exchange of a complete set of real securities. Each central bank is able to commit to the contingent monetary policy rule that maximizes domestic welfare. In an attempt to improve their country's(More)
We introduce a methodology for analysing infinite horizon economies with two agents, one good, and incomplete markets. We provide an example in which an agent's equilibrium consumption is zero eventually with probability one even if she has correct beliefs and is marginally more patient. We then prove the following general result: if markets are effectively(More)
We consider an infinite horizon economy with incomplete markets with two agents and one good. We begin with an example in which an agent's consumption is zero eventually with probability one even if she has correct beliefs and is marginally more patient. We then provide two general results: (a) a precise statement indicating that if markets are effectively(More)
Consider a one step forward looking self-referential model with a one dimensional state variable where the information set available to agents when they make their forecast for the next period includes the current realization of an extrinsic random process but does not include the current value of the state variable. Agents thus iterate twice on their(More)
Overview The module serves as an introduction to formulating and analysing economic problems in a mathematically rigorous manner. It is aimed primarily at those doctoral students who wish to work in areas in which they will have to read material that is technically demanding. There will be lectures on optimisation, a narrow area that will be studied in some(More)
In the literature, habit formation has been often introduced to enhance the agents' desire to smooth consumption over time. This characteristic was found particularly useful in solving the equity premium puzzle and in matching several stylized facts in growth, and business cycles theory as, for example, the high persistence in the U.S. output volatility. In(More)