Showing papers in "Journal of Macroeconomics in 1995"

TL;DR: In this paper, the authors examined postwar U.S. data and tested the implications of Ball and Mankiw's (1994) model of asymmetric price adjustment that monetary shocks have asymmetric effects on output and that the degree of asymmetry is positively related to movements in average inflation.

TL;DR: In this article, the causal linkage between private investment and government provision of public capital and government investment spending is examined by including public sector investment spending and public capital stock along with the variables specified in the major theoretical private investment models.

TL;DR: The authors identify money supply shocks using long-run money neutrality restrictions within a vector autoregression framework to estimate the dynamic response of interest rates to such shocks, finding evidence for a liquidity effect.

TL;DR: In this paper, the authors test for cointegration between the quarterly inflation rate and the expectation of inflation extracted from the three-month Treasury bill rate, and the test results indicate that these variables were cointegral during the sample period 1959:i-1993:iv.

TL;DR: In this paper, the authors attempt to determine whether there exists a stationary long-run money demand function in Argentina, Israel, and Mexico, based on the Johansen method of cointegration.

TL;DR: In this article, a steady-state analysis gives empirical predictions on the relation of investment, finance and debt, and Hopf-Bifurcation analysis establishes the possibility of cyclical paths.

TL;DR: This article examined the long-run relation between two systems of equity markets in the post Bretton Woods era and examined whether central bank intervention as prescribed by the Plaza and Louvre Accords impacted the long run relationships characterizing the system of G-5 and G-7 equity markets, respectively.

TL;DR: In this paper, the authors describe the transitional dynamics of an economy with physical and human capital and show that the choice to invest in human capital implies a forward-looking determination of wages.

TL;DR: The authors found no evidence for the view that countries that pursue macroeconomic policies that result in high inflation, large budget deficits, and high levels of government consumption spending suffer low rates of growth of per capita output.

TL;DR: In this article, the authors apply a threshold autoregressive model to a reaction function of the central bank of Taiwan to see if it responds differently to its policy objectives when the severity of inflation differs.

TL;DR: This article established the theoretical connection between sectoral labor and product markets and explicitly developed the economic relationship of these markets within the imperfect information new classical explanation of business-cycles, and conducted an empirical analysis of the short-run cyclical behavior of real output, prices and wages at the sectoral level of disaggregation.

TL;DR: In this paper, the implications of introducing imported inputs and elasticities of export demand into the neoclassical growth model for the analysis of long run growth are shown, and the authors show that rates of growth of per capita consumption depend not only on the rates of interest and time preference but also on the terms of trade and will in general not be equalized across countries through international trade and capital movements.

TL;DR: In this paper, an intertemporal model is used to explain the long-run behavior of external assets, which predicts that consumption, income and net external assets are cointegrated; a maximum likelihood procedure was used to test this hypothesis and to test linear restrictions implied by the model.

TL;DR: The authors examined the expectation theory of the term structure of interest rates in Australia and found that the spread between the short-term and the official cash rate Granger-caused changes in the cash rate.

TL;DR: In a model where money enters the production function, Wang and Yip (1992) find money to be superneutral with respect to the economy's long run rate of growth as mentioned in this paper.

TL;DR: In this article, the explanatory power of the time-to-build propagation mechanism when the mechanism is modified to take into account capital complementarity was examined and the hypothesis that an important cause of investment start-starts persistence is the complementary relationship existing between various orders of capital was made operational using finely-detailed U.S. Commerce department survey data.

TL;DR: This paper showed that if credit is rationed by restricting the size of loans rather than the number of loans, tighter credit can cause interest rates to fall, suggesting a role for credit rationing in explaining the difficulty of empirically verifying a negative relationship between interest rates and investment, and points to rationing as a factor that may act to destabilize credit markets.

TL;DR: The authors found that U.S. data do not support a key implication of the optimal seigniorage hypothesis, but do support the interest rate smoothing hypothesis during certain Fed chairman regimes.

TL;DR: In this paper, a continuous time stochastic framework for determining optimal management policy for international reserves is developed, which integrates and extends the work of Miller and Orr, Heller, Hamada and Ueda, and Frenkel and Jovanovic.

TL;DR: Instead of aiming for zero inflation, a "productivity norm" would allow permanent changes in the price level reflecting opposite changes in productivity or unit costs of production as discussed by the authors. But Dowd's arguments succeed in undermining the case for a productivity norm only to the extent that they also undermine his own case for zeroflation.

TL;DR: In this paper, a critical appraisal of the "productivity norm" is presented, according to which the price level should fall in line with improvements in productivity, and compares it with the more popular alternative of price-level stability.

TL;DR: The authors showed that reported results of countercyclical prices are, in fact, entirely consistent with Friedman's natural rate-nominal demand shock model, and interpreted these results as at odds with traditional models where aggregate demand changes are the primary source of output fluctuations.

TL;DR: In this article, the authors examined the optimal vintage capital accumulation under asymptotic endogenous growth conditions without input parametrization and showed that technological embodiment implies endogeneity of innovations.

TL;DR: In this article, the authors present estimates of individual value of public consumption and the intertemporal substitution elasticity by means of the Euler-equation approach for the United Kingdom covering the period 1830-1990.

TL;DR: This paper examined three propositions implied by the quantity theory of money, namely, the neutrality hypothesis, the Fisher hypothesis and the monetary approach to exchange rate determination for six developed countries within a dynamic framework, which incorporates the long-run proposition as its steady-state solution while allowing for short-run deviation from the hypothesized long run relationships to take place.

TL;DR: In this article, the authors make a statistical case for a shift in the regime that generates fiscal policy, which coincides with the beginning of federal budget development under the Congressional Budget and Impoundment Control Act of 1974.

TL;DR: In this paper, an overlapping generations model with a banking sector is presented, which allows for both direct lending and indirect lending through banks, and the authors reexamine the long-run effects of a change in the inflation rate.

TL;DR: In this paper, the aggregate demand and aggregate supply effects of interest rates are compared within an internally consistent framework and therefore better establishes the empirical relevance of the supply-side effects on interest rates.

TL;DR: This paper studied the interaction of the money supplies and price levels of twelve European countries over the period 1850 to 1913 and found that the gold standard appears to have been associated with diminishing inflation rates and increasing integration of price levels across countries during this period.

TL;DR: This article showed that the collapse of the paper money system of the Ming dynasty (1368-1644) was not due to a runway printing press but due to the existence of competing metallic currencies, which increased the interest elasticity of paper money demand and thus raised the possibility of self-generating hyperinflation.