1,716 research outputs found
General equilibrium with banks and the factor-intensity condition
This paper looks at the role played by the factor-intensity condition in the model developed by
Leao (2003). To do this, we examine how the model reacts when the factor-intensity condition is
reversed so that the banking industry ceases to be the capital intensive sector and becomes the
labour intensive sector. Simulation results show that, in general, the qualitative nature of the
results does not change. However, there two cases where the qualitative results are affected: the
response of the real wage and of the labour supply to a shock in the banks technological
parameter. We present an interpretation for these results based in part on the framework devised
by Heckscher and Ohlin. We conclude that the factor-intensity condition does play a significant
role in the model of Leao (2003).FC
Consumer durables and the business cycle
DINÂMIA, Setembro de 2008.In this paper, we examine the effect of improving the quality of the consumer durables on
the general equilibrium of a perfectly competitive economy. Our most interesting finding
is that when such an improvement occurs, the percentage response of the labour supply is
higher than the percentage response of real output. This is interesting because one of the
main shortcomings of standard Real Business Cycle models is that they tend to generate a
response of work hours much weaker than the response of real output.FC
Technological innovations and the interest rate
We build a dynamic general equilibrium model that adds a banking sector to the standard RBC model. We look at the response of the real interest rate to innovations in the banks' technology and in the nonbank firms' technology. While technological innovations in the nonbanking sector put upward pressure on the interest rate, technological innovations in banks exert downward pressure on the interest rate. This implies that, if the technological innovations in banks are strong enough, stochastic simulation experiments generate negative correlations between the real interest rate and current and future values of real output. This is especially significant because negative correlations between the interest rate and output are a key post-war U.S. business cycle fact difficult to replicate in benchmark dynamic models.info:eu-repo/semantics/acceptedVersio
Modelling the central bank repo rate in a dynamic general equilibrium framework
This paper incorporates two components of a modern monetary system into a standard real business cycle model: a central bank which lends reserves to commercial banks and charges a repo interest rate; and banks which make loans under a fractional reserve system and thereby create money. We examine the response of our model to shocks in the monetary base, in the currency-deposits ratio and in the required reserve ratio. Our main finding is that all these monetary shocks lead to changes in the composition of total investment between the banking and the non-banking sectors.info:eu-repo/semantics/acceptedVersio
The 2007-2009 subprime crisis and the global public policy response
In this article, we look at the root causes of the 2007-2009 subprime financial crisis in the United States and the ensuing global economic crisis. We then examine how public authorities in advanced economies responded to the crisis. We emphasize that, from the very start, public policy developed along two complementary but distinct lines of intervention: (i) short-term macroeconomic management, and (ii) medium- to long-term reshaping of the financial regulatory framework. We find that the two sub-sets of policies were pursued at the global level and not simply at the national and/or regional level. Finally, we summarize the main risks that emerged as a consequence of the macroeconomic policy response to the crisis, namely high volumes of public debt, an uncertain inflation outlook and the possible development of bubbles in some asset markets.info:eu-repo/semantics/publishedVersio
Wavelets: a powerful tool for studying rotation, activity, and pulsation in Kepler and CoRoT stellar light curves
Aims. The wavelet transform has been used as a powerful tool for treating
several problems in astrophysics. In this work, we show that the time-frequency
analysis of stellar light curves using the wavelet transform is a practical
tool for identifying rotation, magnetic activity, and pulsation signatures. We
present the wavelet spectral composition and multiscale variations of the time
series for four classes of stars: targets dominated by magnetic activity, stars
with transiting planets, those with binary transits, and pulsating stars.
Methods. We applied the Morlet wavelet (6th order), which offers high time and
frequency resolution. By applying the wavelet transform to the signal, we
obtain the wavelet local and global power spectra. The first is interpreted as
energy distribution of the signal in time-frequency space, and the second is
obtained by time integration of the local map. Results. Since the wavelet
transform is a useful mathematical tool for nonstationary signals, this
technique applied to Kepler and CoRoT light curves allows us to clearly
identify particular signatures for different phenomena. In particular, patterns
were identified for the temporal evolution of the rotation period and other
periodicity due to active regions affecting these light curves. In addition, a
beat-pattern signature in the local wavelet map of pulsating stars over the
entire time span was also detected.Comment: Accepted for publication on A&
Antiferromagnetic critical pressure in URu2Si2 under hydrostatic conditions
The onset of antiferromagnetic order in URu2Si2 has been studied via neutron
diffraction in a helium pressure medium, which most closely approximates
hydrostatic conditions. The antiferromagnetic critical pressure is 0.80 GPa,
considerably higher than values previously reported. Complementary electrical
resistivity measurements imply that the hidden order-antiferromagnetic
bicritical point far exceeds 1.02 GPa. Moreover, the redefined
pressure-temperature phase diagram suggests that the superconducting and
antiferromagnetic phase boundaries actually meet at a common critical pressure
at zero temperature.Comment: 5 pgs, 4 figs; AFM ordered moment revised to 0.5 muB, added and
corrected citations and reference
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