Article history: Received 16 June 2009 Accepted 19 April 2010 Available online xxxx JEL classification: E31 E50 E52 E58 F41

We estimate a behavioral New Keynesian (NK) model in which households and firms plan over finite horizon. The finite-horizon planning (FHP) outperforms rational expectations versions of the NK as well other models. In FHP model, are forward-looking thinking about events their horizon but backward-looking regarding beyond that point. This gives rise to substantial aggregate persistence without r...

On one monthly time-series data set of Vietnam economy over 02/2008–09/2018, the Time-Varying-Coefficient VAR model records that trade-off between inflation and output growth is mitigated by foreign capital inflows. The mostly determined credit supply growth, while largely driven direct investment (FDI) A increase FDI USD 1 billion can raise 1.77% rate. result also holds on accounting for excha...

We develop an equivalence between the equilibrium effects of incomplete information and those two behavioral distortions: myopia, or extra discounting future; anchoring current behavior to past behavior, as in models with habit persistence adjustment costs. show how these distortions depend on higher-order beliefs GE mechanisms, they can be disciplined by evidence expectations. finally illustra...

This paper analyzes the effects of lower bound for interest rates on distributions inflation and rates. In a New Keynesian model with bound, two equilibria emerge: policy is mostly unconstrained in “target equilibrium,” whereas constrained “liquidity trap equilibrium.” Using options data inflation, we find forecast densities consistent target equilibrium no evidence favor liquidity equilibrium....

This paper studies how changes in oil supply expectations affect the price and macroeconomy. Using a novel identification design, exploiting institutional features of OPEC high-frequency data, I identify an news shock. These shocks have statistically economically significant effects. Negative leads to immediate increase prices, gradual fall production, inventories. has consequences for US econo...

Search is embeded in an overlapping-generations model. Young people participate a centralized market and a decentralized market sequentially and olds only participates the centralized market. The demographic feature allows analytical tractability. In a series examples, positve inflation rates are Pareto optimal. JEL classification: E31

Differential tax analysis is used to show how the socially optimal fiscal-tax to liquidity-tax ratio changes with the relative size of the tax-evading hidden economy. The smaller the relative size of the hidden economy, the larger the optimal fiscal-tax to liquidity-tax ratio. The empirical cross-section and panel evidence supports this theoretical result. JEL: E31, E52, H21, O17

This paper estimates a structural VAR model of U.S. consumer and world commodity prices. An equiproportional long-run response of nominal price levels to amonetary shock yields identifying restrictions. Exogenous innovations tomonetary policy account for a sizable share of the co-movement of these series, including during episodes more commonly attributed to “supply shocks.” JEL Categories: C32...