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Questions tagged [macroeconomics]

Macroeconomics is a branch of economics dealing with the aggregate economy as a whole, rather than individual markets.

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870 views

What is the calculable effect of counterfeiting on an economy?

I'm curious whether one can numerically calculate the effect that counterfeiting has on an economy. As I understand it, counterfeiting essentially amounts to theft of the wealth of everybody holding ...
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1answer
208 views

Models for inflation prediction

I am looking for some statistical models that are accepted to best predict inflation rates. Anything that is more complicated than linear model will be appreciated. Or even recommend books that ...
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3answers
197 views

Growth Accounting

In growth accounting the production function is defined as follows: $$Y= AF(K,L) $$ That means output $Y$ is dependent upon capital $K$, labour $L$ and technology $A$. Now to produce something, in ...
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6answers
811 views

Graduate Level Textbook on Labor Economics and Macro-Labor

What would be good textbooks at the graduate level that deal with Labor Economics and Labor-Macro (As in, Equilibrium Unemployment Theory, Shimer Puzzle etc)?
6
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1answer
70 views

Distribution of Wages

Is there any paper that looks at the distribution of wages? I'd like to see how many workers are in each percentile of labor income. I know that you could compute it using CPS or US tax data, but I ...
2
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1answer
99 views

Central Banks and Price Stability

Are there any empirical studies on the question of whether independent central banks cause price stability? I am seeking to understand if independence (of the central monitory authority) is part of ...
2
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1answer
210 views

Long Term Impacts of Austerity Measures

Is there much research into the long term impacts of government fiscal contractions. I have heard about 2nd generation unemployed as a result of Thatcher's policies but that is very much anecdotal. ...
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11answers
6k views

What is the economic purpose of increasing the minimum wage?

It is generally accepted among economists that minimum wage warps the equilibrium point between the supply and demand of labor by instituting a price floor and increases unemployment for unskilled ...
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3answers
471 views

The reasons why rouble is collapsing

What can you people say about the reasons why rouble is collapsing? Which one is the main?
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1answer
7k views

Where do remittances come into play in the formula for GDP?

In the classic formula for GDP, i.e., GDP=C+I+G+X-M, where are remittances accounted for? With remittances as high as third of GDP for developing countries, I wonder how they are not explicit in this ...
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4answers
318 views

Inflation reasons beyond Friedman

I think everyone know this Friedman's quote nowadays: Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the ...
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2answers
1k views

What is the difference between “aggregation” and a “representative agent?”

What is the difference between "aggregation" and a "representative agent?" I'm sorry if I'm not entirely clear on this question, but that's why I ask. It seems to me as if a representative agent is ...
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2answers
726 views

Why is capital income taxed differently than wage income?

Why is income from capital gains taxed differently than wage income? There are perhaps historical, practical, and theoretical reasons. What are they? (As far as historical reason go, I'm asking ...
4
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1answer
132 views

Employment Volatility and the Relevance of Aggregate Wage Rigidity

The Mortensen-Pissarides (MP) framework of search labor is the thing in analyzing (equilibrium) unemployment over the business cycle. Shimer showed that the lack of hires is the big margin that ...
9
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1answer
156 views

Banking Regulatory Frameworks, between the 1973 collapse of Bretton Woods and the introduction of the Basel Accords in 1988?

Does anyone know of any work on banking system behaviour, and in particular the governing regulatory frameworks that applied between the 1973 collapse of the gold standard based Bretton Woods system ...
8
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1answer
171 views

Credit Frictions as the source of Business Cycles

Many papers look at the impact of credit frictions onto business cycles, and they almost unambiguously find that credit frictions work as an amplification mechanism of other shocks. For example, ...
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2answers
144 views

Schumpeterian Business Cycles

The basic idea of Schumpeterian Business Cycles is that new technologies require creative destruction but will yield positive growth. These two opposing forces have impacts onto the real economy at ...
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1answer
195 views

What is the impact on the money supply of a reduction in the required reserve ratio? [closed]

In April 2011, the money supply was estimated to be 52 million hurls. At the same time, bank reserves were 6.24 million hurls and the reserve requirement was 12 percent. The banking industry, being “...
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1answer
68 views

How to get details on all the models used for evaluating ACA?

I am trying to track down the models and the underpinnings/details for them for models that may have been used to evaluate the ACA/Obamacare. I am aware of Gruber's (proprietary) model, and am ...
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2answers
141 views

Whatever happened to efficiency wage theories?

Older macroeconomics texts give much space to efficiency wage explanations of how unemployment could coexist with wages in equilibrium higher than the reservation wage of workers. However, there ...
3
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1answer
1k views

Government expenditure multiplier in the new-Keynesian model?

Does a temporary increase in government expenditure increase output in the standard new-Keynesian DSGE model? Is it possible to draw any intuitive parallels between the impact of government ...
21
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3answers
1k views

In what sense are “new-Keynesian” models “new” and in what sense are they “Keynesian”?

Hopefully, the title of this question is quite descriptive. Whilst I have a broad understanding of the research agenda of macroeconomics, I don't have a very good picture of how it is divided into ...
6
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2answers
407 views

Why does the Laffer curve for consumption have no peak?

According to Trabant and Uhlig (2009), the Laffer curve for consumption has no peak. As far as I can make out, the argument is based on the fact that money extracted by taxing consumption ends up ...
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1answer
300 views

Friedman k% applied to cryptocurrency

Follow on to this question: Would a cryptocurrency with a base that expanded at a fix rate face fewer difficulties than one with a stagnant base? Edit: I'm referring specifically to the issues ...
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4answers
2k views

From an economics perspective, what are the ramifications of a currency with fixed money supply?

I'm thinking specifically of bitcoins. What are the pros and cons of having a fixed number of coins, as opposed to more "normal" currencies? Would the currency have no inflation?
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1answer
100 views

Lifecycle Consumption Models and Dispersion in Consumption

Lifecycle models base on the assumption that households want to maximize their consumption and at the same time insure themselves against income shocks. However, there is a lot of (c.p.) consumption ...
6
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2answers
345 views

Unemployment and the Frisch-Elasticity

There is the long debate on the Frisch-Elasticity being the driver of unemployment over the business cycle. One argument against the voluntary-unemployment mechanism of RBC models is that if we ...
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0answers
80 views

What is the relationship between real growth and stock market [closed]

I am interested in understanding when the stock market can influence real growth and the opposite, when real growth can influence the stock market. In other words, in which way causation is more ...
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5answers
2k views

Unemployment and the Minimum Wage---what are the main counter-arguments to Card and Krueger?

Card and Krueger's paper (AER 1994, "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania") uses a difference-in-difference identification strategy to ...
8
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5answers
3k views

How does a reduction in consumer spending in favour of consumer saving, affect economic activity?

Let's say our government runs an advertising campaign, encouraging its citizens to reduce spending money on consumer items, and instead save more money. Let's say the campaign is successful, and ...
64
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13answers
15k views

Fundamental equations in economics

For the other sciences it´s easy to point to the most important equations that ground the discipline. If I want to explain Economics to a physicist say, what are considered to be the most important ...
11
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2answers
187 views

Optimality of Zero Capital Taxation

The Chamley-Judd result of zero optimal capital taxation says that 0 capital taxation are required in order to maximize welfare at the steady state. The result is 30 years old. Still assuming that ...
25
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1answer
398 views

How do Gini coefficients correlate with the cost of higher education?

Are there any studies that explore the higher net present value (NPV) of education in countries with higher Gini coefficients? Additionally, do any of these studies include the impacts of economic ...
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4answers
3k views

How does a national budget differ from a household budget?

We are often told by pundits that "Country X cannot spend more than they take in in revenue, because a house that makes A and spends B will always collapse if B>A". Essentially the siren calls of a ...