scholarly journals RESPONDING TO THE INFLATION TAX

2017 ◽  
Vol 23 (06) ◽  
pp. 2378-2408 ◽  
Author(s):  
Tai-Wei Hu ◽  
Cathy Zhang
Keyword(s):  
Capital Accumulation ◽  
Extensive Margin ◽  
Multiple Channels ◽  
Optimal Trading ◽  
Search Intensity ◽  
Inflation Rates ◽  
Trading Mechanism ◽  
Efficient Allocations ◽  
Model Features ◽  
Nonmonotonic Effects

We adopt mechanism design to study the effects of inflation on output, trade, and capital accumulation. Our theory captures multiple channels for individuals to respond to inflation: search intensity, market participation, and substitution between money and a higher return asset. We characterize constrained efficient allocations and show inflation has nonmonotonic effects on the frequency of trades (extensive margin) and the total quantity traded (intensive margin). The model features monetary superneutrality for low inflation rates, nonlinearities in trading frequencies, and substitution of money for capital for higher inflation rates. While these effects are difficult to capture in previous models, we show how they are intimately related by all being features of an optimal trading mechanism.

scholarly journals Why Does Misallocation Persist?

2010 ◽  
Vol 2 (1) ◽  
pp. 189-206 ◽  
Author(s):  
Abhijit V. Banerjee ◽  
Benjamin Moll
Keyword(s):  
Developing Countries ◽  
Simple Model ◽  
Empirical Evidence ◽  
Capital Accumulation ◽  
Credit Constraints ◽  
Extensive Margin ◽  
Capital Misallocation ◽  
Cross Country ◽  
General Conditions

Recent papers argue that the misallocation of resources can explain large cross-country TFP differences. This argument is underpinned by empirical evidence documenting substantial dispersion in the marginal products of resources, particularly capital, in developing countries. But why does misallocation persists? That is, why don't distortions disappear on their own? This is particularly true for capital misallocation, a point we illustrate in a simple model of capital accumulation with credit constraints. We distinguish between misallocation on the intensive and the extensive margin, and show that the former should disappear asymptotically under general conditions, while the latter may persist. We conclude by discussing possible theories of persistent misallocation. (JEL D24, E22, G31, G32, L26)

Pension reform with variable retirement age: a simulation analysis for Germany

2012 ◽  
Vol 11 (3) ◽  
pp. 389-417 ◽  
Author(s):  
HANS FEHR ◽  
MANUEL KALLWEIT ◽  
FABIAN KINDERMANN
Keyword(s):  
Demographic Transition ◽  
Simulation Analysis ◽  
Pension Reform ◽  
Retirement Age ◽  
Extensive Margin ◽  
Long Run ◽  
Old Age Poverty ◽  
Simulation Results ◽  
One Year ◽  
Model Features

AbstractThe paper analyzes the recent pension reform in Germany which increases the normal retirement age by two years. The applied simulation model features a realistic demographic transition, distinguishes three skill classes with different life expectancies and allows individuals to choose their labor supply at the intensive and the extensive margin.Our simulation results indicate that under the existing pension rules long-run contribution rates and old-age poverty rates will increase considerably. The proposed rise in the normal retirement age will postpone effective retirement by about one year and redistribute towards future cohorts. A stronger delay in effective retirement may be achieved by raising the actuarial adjustment of benefits.

scholarly journals Technology and the two margins of labor adjustment: a New Keynesian perspective

2019 ◽  
Vol 20 (1) ◽  
Author(s):  
Francesco Furlanetto ◽  
Tommy Sveen ◽  
Lutz Weinke
Keyword(s):  
Capital Accumulation ◽  
Robustness Analysis ◽  
New Keynesian ◽  
Extensive Margin ◽  
Technology Shocks ◽  
New Keynesian Model ◽  
Keynesian Model ◽  
Labor Adjustment ◽  
Market Variables ◽  
Economic Journal

Abstract Canova et al. [Canova, F., J. D. López-Salido, and C. Michelacci. 2010. “The Effects of Technology Shocks on Hours and Output: A Robustness Analysis.” Journal of Applied Econometrics 25: 755–773; Canova, F., J. D. López-Salido, and C. Michelacci. 2012. “The Ins and Outs of Unemployment: An Analysis Conditional on Technology Shocks.” The Economic Journal 123: 515–539] estimate the dynamic response of labor market variables to technological shocks. They show that investment-specific shocks imply predominantly an adjustment along the intensive margin (i.e., hours per worker), whereas for neutral shocks the largest share of the adjustment takes place along the extensive margin (i.e., employment). In this paper we develop a New Keynesian model featuring capital accumulation, two margins of labor adjustment and a hiring cost. The model is used to analyze a novel economic mechanism to explain that evidence.

Auction Based Distributed and Optimal Trading Mechanism in Electricity Markets under Blockchains

2021 ◽  
Author(s):  
Tianbo Zhu ◽  
Zhongkang Wei ◽  
Bo Ning ◽  
Jiaqiang Niu ◽  
Jun Liu ◽  
...  
Keyword(s):  
Electricity Markets ◽  
Optimal Trading ◽  
Trading Mechanism

scholarly journals New Characteristics and Hedonic Price Index Numbers

2021 ◽  
pp. 1-49
Author(s):  
Ian Crawford ◽  
J. Peter Neary
Keyword(s):  
Price Index ◽  
Extensive Margin ◽  
Hedonic Price ◽  
Quality Change ◽  
Commodity Group ◽  
Index Numbers ◽  
Significant Bias ◽  
Inflation Rates ◽  
Car Sales ◽  
Standard Techniques

Abstract Changes in product characteristics on the extensive margin (the addition of new features and the removal of old ones) are an important and hitherto neglected dimension of quality change. Standard techniques for adjusting price indices for new goods cannot handle such changes satisfactorily, and this leads to an economically and statistically significant bias in the measurement of prices and real output. We combine insights from the theories of exact index numbers and demand for characteristics to develop a new method for incorporating changes on the extensive characteristic margin. Applied to U.K. data on new car sales, our method leads to revisions in estimated inflation rates for this commodity group that are both plausible and quantitatively important.

Secular stagnation in the modern world

2018 ◽  
pp. 125-141 ◽  
Author(s):  
S. M. Drobyshevsky ◽  
P. V. Trunin ◽  
A. V. Bozhechkova
Keyword(s):  
Public Debt ◽  
Capital Accumulation ◽  
Technological Development ◽  
Japanese Economy ◽  
Modern World ◽  
Key Factors ◽  
Destruction Process ◽  
Secular Stagnation ◽  
The Impact

The paper studies the factors of secular stagnation. Key factors of long-term slowdown in economic growth include the slowdown of technological development, aging population, human capital accumulation limits, high public debt, creative destruction process violation etc. The authors analyze key theoretical aspects of long-term stagnation and study the impact of these factors on Japanies economy. The authors conclude that most of the factors have significant influence on the Japanese economy for recent decades, but they cannot explain all dynamics. For Russia, on the contrary, we do not see any grounds for considering the decline in the economy since 2013 as an episode of secular stagnation.

Regional effects of inflation targeting in Russia: Factors of heterogeneity and structural inflation rates

2019 ◽  
pp. 70-89
Author(s):  
Michael I. Zhemkov
Keyword(s):  
Monetary Policy ◽  
Inflation Targeting ◽  
Structural Factors ◽  
Regional Effects ◽  
Inflation Rates ◽  
Price Growth ◽  
Effective Exchange ◽  
The Difference ◽  
Communication Policies ◽  
Structural Levels

Inflation targeting in Russia implies maintaining stable low inflation at a level of 4% throughout the country. The presence of structural factors in some regions can determine deviations from the all-Russian inflation, which can lead to different effects of monetary policy in Russian regions. In this paper, we analyze regional heterogeneity of inflation and factors of inflation deviations from the national average, estimate structural levels of inflation in the regions of Russian Federation. These estimates confirm the presence of some regional factors of inflation deviations from the all-Russian indicator, such as the difference in productivity growth of the tradable and non-tradable sectors (Balassa—Samuelson effect), effective exchange rates, real incomes and product stocks. In addition, our results confirm the presence of regions with price growth rate above and below monetary policy target. The results of this research can be used for the development of monetary and communication policies.

Human Capital Accumulation and Resource Abundance

2011 ◽  
pp. 66-77
Author(s):  
O. Vasilieva
Keyword(s):  
Economic Growth ◽  
Human Capital ◽  
Capital Accumulation ◽  
Relevant Literature ◽  
Harmful Effect ◽  
Human Capital Accumulation ◽  
Resource Abundance ◽  
Empirical Results ◽  
Theoretical Predictions ◽  
Crowd Out

Does resource abundance positively affect human capital accumulation? Or, alternatively, does it «crowd out» the human capital leading to the deterioration of economic growth? The paper gives an overview of the relevant literature and discusses both theoretical and empirical results obtained regarding the connection between human capital accumulation and resource abundance. It shows that despite some theoretical predictions about the harmful effect of resource abundance on human capital accumulation, unambiguous evidence of such impact that would be robust with respect to the change of resource abundance parameter has not been obtained yet.

Koreans across the Sea: Migration of Laborers to the Metropole, 1910–1937

2019 ◽  
pp. 161-200
Author(s):  
Mikwi Cho
Keyword(s):  
Capital Accumulation ◽  
Regional Scale ◽  
Living Conditions ◽  
Colonial Period ◽  
Global City ◽  
Japanese Empire ◽  
Chain Migration ◽  
Free Mobility

This paper is concerned with Korean farmers who were transformed into laborers during the Korean colonial period and migrated to Japan to enhance their living conditions. The author’s research adopts a regional scale to its investigation in which the emergence of Osaka as a global city attracted Koreans seeking economic betterment. The paper shows that, despite an initial claim to permit the free mobility of Koreans, the Japanese empire came to control this mobility depending on political, social, and economic circumstances of Japan and Korea. For Koreans, notwithstanding poverty being a primary trigger for the abandonment of their homes, the paper argues that their migration was facilitated by chain migration and they saw Japan as a resolution to their economic hardships in the process of capital accumulation by the empire.

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