# Tag Info

Accepted

### Basic New Keynesian Model: Why variables are defined by integral equations

First of all, this is not something special to "the basic New Keynesian Model". It is a commonly used technique when modeling an economy with competitive environment. In your case, the author wrote ...
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### Intuition for the CES consumption index in New-Keynesian DSGE models

Heuristically, you can think of the integral as just a sum: $$\bar{C} = \left( \sum_{i=1}^n C_i^{1-\frac{1}{\epsilon}} \right)^{\frac{\epsilon}{\epsilon - 1}}$$ where $\bar{C}$ is an index of ...
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### What would be the defining characteristic of New-Keynsian thought?

Gali's Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework, provides an advanced undergraduate / first-year graduate student introduction to these models,...
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### Macroeconomics Textbook on New-Keynesian models

Check out the following: Jordi Gali; Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework David Romer; Advanced Macroeconomics Michael Woodford; ...
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### Macroeconomics Textbook on New-Keynesian models

Michael Woodford's book Interest and Prices, while it may not be explicitly New Keynesian, may have some of the rigor you're looking for applied to this class of models. A more direct alternative ...
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### Is there any article or paper that describes what Thomas Sargent thinks of New Keynesian economics/models?

This journal article (Oct 29-2011,) has parts from a telephone conversation of the journalist with Sargent: http://www.nytimes.com/2011/10/30/your-money/thomas-sargent-nobel-winner-rejects-...
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### Macroeconomics Textbook on New-Keynesian models

Drago Bergholt has all math steps for Gali's book: The Basic New Keynesian Model
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### Why solving the model for a benevolent social planner gives an efficient allocation?

I think the general proof is in this paper. Thinking in a simple exchange Edgeworth Box, a competitive economy involves prices, which mediate the relationship between consumers relative valuation of ...
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### Can intermediate good producer's profit ever be zero in new keynesian model?

Yes. In the core New Keynesian model in Galí, it is possible for the aggregate profits of intermediate good producers to be zero or negative; and it is even more likely that the profits of individual ...
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### Macroeconomics Textbook on New-Keynesian models

One book which I have used and which has an excellent chapter on NK-DSGE models is Monetary Theory and Policy by Carl E. Walsh. Even though he only has one chapter on NK-DSGE models (50 pages or so) ...
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### Macroeconomics Textbook on New-Keynesian models

I've just found Michael Wickens' Book and George Mccandless' ABC of RBC. Wickens leaves the stochastic element of the DSGE's model out of the picture, so I'm not sure if it's a good book. ...

### What would be the defining characteristic of New-Keynsian thought?

I will try to answer this question although it is rather hard using only one paragraph, if not impossible. A paragraph explaining what New-Keynesian Economics is: Models explaining price and wage ...
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### Macroeconomics Textbook on New-Keynesian models

I often dip into "advanced undergrad" texts when I really want something broken down. Sometimes they deliver, sometimes not. With that beaming endorsement, I'll offer this suggestion: pair Romer's ...
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### What does it mean for a technology to have a $|\rho|<1$?

New technology makes past technology obsolete. How many people know these days how to light a fire by rubbing wood together? How many people know the nuts and bolts of tending to the engine of a train ...
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### Guess and verify?

As Dave Harris commented it depends a bit on the context. I know the guess and verify solution method mainly from solving value functions in differential resource games (more specifically the papers ...
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### Keynesian Ethics

If you enjoy ethical and philosophical aspects, you should look into international aid and intervention. Check out "Adaptive Preferences and Women's Empowerment" by Khader and work by Nussbaum in ...
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