Showing papers in "Journal of Macroeconomics in 2011"

TL;DR: In this paper, the authors use wavelet analysis to study business cycle synchronization across the EU-15 and the Euro-12 countries and find that the French business cycle has been leading the German business cycle as well as the rest of Europe.

TL;DR: In this article, the authors investigated the growth effects of inflation on a wide sample of countries, including both industrialized and emerging economies, and found that inflation non-linearly impacts economic growth.

TL;DR: In this article, the authors apply the regression quantile approach developed by Koenker and Xiao (2004) to investigate the dynamic behavior of inflation in 12 OECD countries and find that the inflation rates are not only mean-reverting but also exhibit asymmetries in their dynamic adjustments, in which large negative shocks tend to induce strong mean reversion, and on the contrary, large positive shocks do not.

TL;DR: In this article, the authors lay out an analytical framework for determining the impact of a large nominal debt overhang on the temptation to inflate, and suggest that when economic growth is stalled, the US debt may induce an increase in inflation of about 5% for several years that could significantly reduce the debt ratio.

TL;DR: This paper investigated the responsiveness of the Chinese government's monetary policies in terms of the money supply and interest rates to economic conditions and the effectiveness of these policies in achieving the goals of stimulating economic growth and controlling inflation.

TL;DR: The authors empirically investigated whether the contribution of human capital to productivity growth depends on the composition of human resources and proximity to the technology frontier in a panel of 87 sample countries over the period 1970-2004.

TL;DR: In this paper, the authors show that the canonical Calvo-style model cannot explain the joint behavior of inflation and the labor share in Europe, and that the model fails very badly in sectoral data with consistently negative estimated coefficients on the labor shares in a number of different inflation specifications.

TL;DR: In this paper, monetary policy rules for six Central and Eastern European countries (CEEC) during the period when they prepared for membership to the EU and monetary union were estimated by taking changes in the policy settings explicitly into account and by splitting up the exchange rate impact into two different components.

TL;DR: In this paper, the authors examined the implications of the Australian means-tested age pension for incentives of individuals to save and work, for government financial commitments and for the welfare of individuals.

TL;DR: In this article, the authors analyzed the linkages that exist among FDI, trade and industrial dissimilarity in relation to business cycle co-movements using a panel data set taken from 77 pairs of developed countries.

TL;DR: In this article, the authors study the welfare properties of an economy where both monetary and fiscal policies follow simple rules, and where a subset of agents is liquidity constrained, and show that the welfare benefits of optimizing the fiscal rule are far larger than those of optimizing monetary rule.

TL;DR: In this article, the authors construct a quantitative general equilibrium lifecycle model with housing tenure decisions to investigate the degree to which wealth inequality in the United States is affected by the preferential tax treatment of home-ownership.

TL;DR: The authors explored the causal relations between real estate prices and the current account using recently developed econometric methods for recursive systems and found little evidence that current account deficits (capital account surpluses) directly drove real-estate prices in the United States, Spain, and Ireland.

TL;DR: In this article, the authors developed a two-country R&D-based growth model with wealth heterogeneity and derived the Nash equilibrium level of patent breadth and found that it is sub-optimally low relative to globally optimal patent breadth.

TL;DR: In this paper, the authors present statistical evidence of heterogeneous inflation in Japan using regional data and show no evidence of price convergence in the entire group of regions although there is some evidence of convergence in subgroups.

TL;DR: In this article, a growth equation augmented with fiscal variables and controlling for the period in which fiscal rules were implemented in Europe is estimated over a panel of 15 EU countries (and 8 OECD countries) for a period 1970-2005 with the purpose of answering whether Maastricht and SGP fiscal rules have affected growth of European Union countries.

TL;DR: In this article, the authors argue that because United States inflation has been non-stationary over the past five decades the vast body of empirical research that proceeds without adequately accounting for the nonstationarity in the data is invalid.

TL;DR: In this article, the authors used ex-ante data for the estimation of Taylor rules and provided empirical evidence that financial market participants incorporate Taylor-type rules in their forecasts for the G7 countries.

TL;DR: In this paper, the authors highlight the importance of global capital market shocks for fiscal sustainability, a relationship which has hitherto been ignored in the empirical literature, and demonstrate that the relationship between deficit and debt is conditional upon a global factor.

TL;DR: This article examined the optimal monetary delegation arrangement of central bank independence and conservatism in the presence of uncertainty about the central bank's output objective and showed that full independence is no longer optimal with uncertain central bank preferences.

TL;DR: This article analyzed the relationship between macroeconomic fundamentals and exchange rates for some major industrialized countries using an error correction model with time-varying parameters for the post Bretton Woods period.

TL;DR: In this paper, the experience of suspension of the gold standard in World War I and resumption in the 1920s (for some countries at a different parity) is reviewed, and it suggests that, in practice, price-level targeting might operate with an escape clause that would allow rebasing of the price target in the face of large shocks.

TL;DR: In this article, a state-space model that can deal with publication lags and data revisions is presented for real-time macroeconomic data are typically incomplete for today and the immediate past (ragged edge) and subject to revision.

TL;DR: In this article, the authors study a close Overlapping generations economy that grows through sequential quality improvements and show that for plausible values of the Inter-temporal Elasticity of Substitution, shorter patent length enhances growth and under exogenous innovation size loosening patent breadth protection spurs R&D investment and quality growth.

TL;DR: The authors found that there is a substantial degree of heterogeneity in the ability of Fed watchers to forecast US monetary policy decisions and that this heterogeneity is related to both the skills of analysts and their geographic location.

TL;DR: In this article, the authors examined the links between asset price movements and fiscal adjustments and found evidence that revenue windfalls due to higher residential, commercial property and equity prices can be sustained, thus, improving revenue and primary balances.

TL;DR: In this paper, the authors used a model of family decision making with home production and individual earnings heterogeneity to understand the evolution of married female time allocation over time, although the falling cost of home appliances is a dominant explanation for the time allocation outside of workplace, while the gender earnings gap is the dominant explanation of the workforce participation decision.

TL;DR: In this paper, the authors show that perfect capital mobility is not always optimal and that capital controls may enhance an economy's welfare level, if the domestic financial intermediaries are less efficient and the government imposes stricter capital controls in the form of a tax on foreign borrowing.

TL;DR: In this paper, the authors provide an assessment of Euro area inflation dynamics based on the distribution dynamics approach, finding that raw series and trends have converged, although the convergence process has not been constant over time.

TL;DR: This article analyzed three motives for money demand in an overlapping generations setup in order to explain these observations: money-in-the-utility, an economy with costly credit service, and limited-participation.