scholarly journals Beliefs asymmetry and price stability in a cobweb model

2021 ◽  
Author(s):  
Michele Berardi
Keyword(s):  

2002 ◽  
Vol 52 (1) ◽  
pp. 57-78
Author(s):  
S. Çiftçioğlu

The paper analyses the long-run (steady-state) output and price stability of a small, open economy which adopts a “crawling-peg” type of exchange-rate regime in the presence of various kinds of random shocks. Analytical and simulation results suggest that with the exception of money demand shocks, an exchange rate policy which involves a relatively higher rate of indexation of the exchange rate to price level is likely to lead to the worsening of price stability for all types of shocks. On the other hand, the impact of adopting such a policy on output stability depends on the type of the shock; for policy shocks to the exchange rate and shocks to output demand, output stability is worsened whereas for the shocks to risk premium of domestic assets, supply price of domestic output and the wage rate, better output stability is achieved in the long run.



2019 ◽  
Vol 38 (2) ◽  
pp. 449
Author(s):  
Gang Zhou ◽  
Yongtong Mu ◽  
Zhuo Chen ◽  
Su Wang




1998 ◽  
Author(s):  
Hasan Bakhshi ◽  
Andrew Haldane ◽  
Neal Hatch




1966 ◽  
Vol 74 (2) ◽  
pp. 206-207 ◽  
Author(s):  
B. S. Yamey
Keyword(s):  


Author(s):  
Clemens Buchen ◽  
Alberto Palermo

AbstractWe relax the common assumption of homogeneous beliefs in principal-agent relationships with adverse selection. Principals are competitors in the product market and write contracts also on the base of an expected aggregate. The model is a version of a cobweb model. In an evolutionary learning set-up, which is imitative, principals can have different beliefs about the distribution of agents’ types in the population. The resulting nonlinear dynamic system is studied. Convergence to a uniform belief depends on the relative size of the bias in beliefs.



2000 ◽  
Vol 14 (4) ◽  
pp. 373-393 ◽  
Author(s):  
Paul Dalziel
Keyword(s):  


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