We develop a theory of money and credit as competing payment instruments, then put it to work in applications. Buyers can use cash or credit, with the former (latter) subject to the inflation tax (transaction costs). Frictions making the choice of payment method interesting also imply equilibrium price dispersion, and together these deliver closed-form solutions for money demand. The model can ...

• ei, fi. e1 = 1⊗ E1, e2 = 1⊗ E2; f1 = 1⊗ F1, f2 = 1⊗ F2. • e0, f0, h0. e0 = t⊗ [F1, F2] = t⊗ E31. f0 = t −1 ⊗ [E1, E2] = t−1 ⊗ E13. h0 = [e0, f0] = −1⊗ (H1 +H2) + c = −1⊗ (E11 + E33) + c • H. H = 1⊗H ⊕ Cc⊕ Cd. Note that c is just the central element c = h0 + h1 + h2. • Π. α1 = 1 = 2, α1(c) = α1(d) = 0 α2 = 1 = 2, α1(c) = α1(d) = 0 θ = α1 + α2 = 1 − 3, θ(c) = θ(d) = 0 δ : δ(1⊗H) = δ(c) = 0, δ(d...

If preferences or budgets are heterogeneous across people (as they clearly are), then individual costof-living indices are also heterogeneous. Thus, any social cost-of-living index faces an aggregation problem. In this paper, we provide a solution to this problem which we call a ’common-scaling’social cost-of-living index (CS-SCOLI). In addition, we describe nonparametric methods for estimating...

This paper further tests Romer’s (1993) extension of Kydland and Prescott’s (1977) predictions for dynamic-inconsistency problems in open economies. In a panel data set of developed and developing countries from 1973 to 1998, I find that openness does not play a role in restricting inflation in the short-run. On the other hand, a fixed exchange-rate regime plays a significant role. The results ...

I develop and estimate a monetary business cycle model with nominal loans and collateral constraints tied to housing values. Demand shocks move housing and nominal prices in the same direction, and are amplified and propagated over time. The financial accelerator is not uniform: nominal debt dampens supply shocks, stabilizing the economy under interest rate control. Structural estimation suppor...

e propose a new hybrid piezoelectric composite comprised of rmchair single-walled carbon nanotubes and piezoelectric fibers s reinforcements embedded in a conventional polymer matrix. ffective piezoelectric and elastic properties of this composite ave been determined by a micromechanical analysis. Values of he effective piezoelectric coefficient e31 of this composite that ccounts for the in-pla...

UNLABELLED The objective of this paper is to verify the hypotheses presented in the literature on the causal relationship between inflation and its uncertainty, for the newest EU countries. To ensure the robustness of the results, in the study four models for inflation uncertainty are estimated in parallel: ARCH (1), GARCH (1,1), EGARCH (1,1,1) and PARCH (1,1,1). The Granger method is used to t...

The European Medicines Agency (EMA) and the Federation of Pharmaceutical Industries and Associations (EFPIA) hosted a workshop on modeling and simulation (M&S).(1) Representatives from industry, academia, and regulatory agencies from Europe and beyond discussed the role of M&S in the development and registration of medicinal products within plenary and breakout sessions (BOS). This manuscript s...

This paper studies an advantage of commitment over discretion when a central bank observes only noisy measures of current inflation and output, in the context of an optimizing model with nominal-price stickiness. Under a commitment regime, if current policy turns out to be too expansionary (contractionary) because of the bank’s information problem, subsequent policies should be slightly contrac...

We analyze a simple strategic model of interaction between central bank and labor union. We assume that the intransparency of the central bank (labor union) induces Knightian uncertainty faced by the labor union (central bank). Knightian uncertainty means that decision makers are unable to make exact probability judgements. It is modelled by Choquet Expected Utility Theory and its recent applic...