Journal•ISSN: 1935-1690
B E Journal of Macroeconomics
De Gruyter
About: B E Journal of Macroeconomics is an academic journal published by De Gruyter. The journal publishes majorly in the area(s): Monetary policy & Inflation. It has an ISSN identifier of 1935-1690. Over the lifetime, 544 publications have been published receiving 8222 citations. The journal is also known as: B.E. journal of macroeconomics (Internet).
Papers published on a yearly basis
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TL;DR: In this paper, the authors study the evolution of the labor share in the OECD since 1970 and show that it is essentially related to the capital-output ratio and that this relationship is shifted by factors like the price of imported materials or the skill mix.
Abstract: In this paper we study the evolution of the labor share in the OECD since 1970. We show it is essentially related to the capital-output ratio; that this relationship is shifted by factors like the price of imported materials or the skill mix; and that discrepancies between the marginal product of labor and the real wage (due to, e.g., product market power, union bargaining, and labor adjustment costs) cause departures from it. We provide estimates of the model with panel data on 14 industries and 14 countries for 1973-93 and use them to compute the evolution of the wage gap in Germany and the US.
608 citations
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TL;DR: In this paper, a growth model that is able to match several key facts of economic history is presented, including a virtuous circle: more people produce more ideas, which in turn makes additional population growth possible.
Abstract: This paper studies a growth model that is able to match several key facts of economic history. For thousands of years, the average standard of living seems to have risen very little, despite increases in the level of technology and large increases in the level of the population. Then, after thousands of years of little change, the level of per capita consumption increased dramatically in less than two centuries. Quantitative analysis of the model highlights two factors central to understanding this history. The first is a virtuous circle: more people produce more ideas, which in turn makes additional population growth possible. The second is an improvement in institutions that promote innovation, such as property rights: the simulated economy indicates that arguably the single most important factor in the transition to modern growth has been the increase in the fraction of output paid to compensate inventors for the fruits of their labor.
324 citations
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TL;DR: In this paper, a dynamic stochastic general equilibrium (DSGE) model with housing was used to show that strong monetary reactions to accelerator mechanisms that push up credit growth and house prices can help macroeconomic stability, and using a macro-prudential instrument specifically designed to dampen credit market cycles would also provide stabilization benefits when an economy faces financial sector or housing demand shocks.
Abstract: Using a dynamic stochastic general equilibrium (DSGE) model with housing, this paper shows that strong monetary reactions to accelerator mechanisms that push up credit growth and house prices can help macroeconomic stability. In addition, using a macroprudential instrument specifically designed to dampen credit market cycles would also provide stabilization benefits when an economy faces financial sector or housing demand shocks. However, the optimal macroprudential rule under productivity shocks is to not intervene. Therefore, it is crucial to understand the source of house price booms for the design of monetary and macroprudential policy.
240 citations
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TL;DR: The authors analyzed the relationship between stock prices, house prices and consumption using data for 16 OECD countries and found an increased sensitivity in the 1990s of consumption to permanent changes in stock prices for both countries with bank-based financial systems.
Abstract: This paper analyzes the relationship between stock prices, house prices and consumption using data for 16 OECD countries. The panel data analysis suggests that the long-run responsiveness of consumption to permanent changes in stock prices is higher for countries with a market-based financial system than for countries with a bank-based financial system. Splitting the sample into the 1980s and 1990s further shows an increased sensitivity in the 1990s of consumption to permanent changes in stock prices for both countries with bank-based financial systems. The relationship between changes in consumption and changes in house prices is positive for the second sample period across all specifications and financial systems.
207 citations
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TL;DR: In this paper, the authors explored theoretically and empirically the view that Taylor rules are often nonlinear due to asymmetric central bank preferences, and that the nature of these asymmetries changes across different policy regimes.
Abstract: This paper explores theoretically and empirically the view that Taylor rules are often nonlinear
due to asymmetric central bank preferences, and that the nature of these asymmetries changes
across different policy regimes. The theoretical model uses a standard new Keynesian framework
to establish equivalence relations between the shape of nonlinearities in Taylor rules and asymmetries
in monetary policy objectives. These relations are estimated and tested for the United
Kingdom (UK) and the United States (US) over various subperiods by means of smooth transition
regressions.
There is often evidence in favor of nonlinear rules in both countries, and their character changes
substantially over subperiods. The period preceding inflation targeting in the UK is characterized
by a concave rule supporting dominant recession avoidance preferences, while the inflation targeting
period is characterized by a convex rule supporting dominant inflation avoidance preferences
on the part of policymakers. Dominant inflation avoidance appears during the Vietnam War in
the US while, during the Burns/Miller and the Greenspan periods, recession avoidance dominates.
Under Volcker the Taylor rule is linear. This is consistent with an offset by inflation avoidance of
the more prevalent recession avoidance of the Fed.
Findings from both countries support the view that reaction functions and the asymmetry properties
of the underlying loss functions change in line with the regime and the main macroeconomic
problem of the day.
195 citations