Optimal monetary policy with durable consumption goods
نویسندگان
چکیده
منابع مشابه
Durable Goods and Sectoral Effects of Monetary Policy
High degree of interest sensitivity of durable goods is now a stylized fact in the literature of monetary policy. This literature, however, does not provide a clear and consensual explanation for the modalities of this stylized fact. In this paper, two independent empirical models are performed to shed more light on the cross-sectoral impacts of monetary policy. The results of first study indic...
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A durable purchased at time t 2 [0;1) provides a constant service ow x0 in the interval [t; t + 1]. The price of the durable is reduced periodically: it is equal to p = p0=(1 + ) in the period of time [ ; + 1), 2 N, where 0. Assume that the interest rate equal to the rate of time preference: r = . Consider a consumer that at date t = 0 has no durable and a lifetime wealth w. His optimization p...
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Real annual consumption growth has averaged about 3.7% between 1998 Q1 and 2003 Q3—well above real average annual GDP growth of about 2.6% during that period. (2) Chart 1 shows that the buoyancy of consumer spending can be entirely accounted for by strong growth in durable and semi-durable goods expenditure (henceforth referred to as 'durable spending' unless otherwise specified). Since 1998 Q1...
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We study consumption of durable and nondurable goods when the durable good is subject to transaction costs. In the model, agents derive utility from a service flow of a durable good and a consumption flow of a nondurable good. The key feature of the model is the existence of a fixed transaction cost in the durable good market. The fixed cost induces an inaction region in the purchase of the dur...
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The purpose of the present paper is to examine the implications of the Federal Reserve-MIT-Penn Model (hereafter referred to as the FMP model) with respect to the central question with which this conference is concerned, namely whether and, if so, to what extent, monetary policy affects economic activity through its direct impact on cosumers’ expenditure. For the purpose of this paper we have c...
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ژورنال
عنوان ژورنال: Journal of Monetary Economics
سال: 2006
ISSN: 0304-3932
DOI: 10.1016/j.jmoneco.2005.05.005