Monetary policy and interest rates: an adaptive estimator approach
Article Abstract:
Changes in Federal Reserve policy toward interest rates have made long-term predictions difficult. This paper examines the changes made in 1979 and 1982 and concludes that a correction in the heteroskedasticity is required. This can be done using GLS (Generalized Least Squares estimator) and the adaptive estimator for an unknown form. The paper also concludes that BIV (Bounded-influence Interest Variables estimator) is not able to distinguish grouped outlets from individuals.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 1993
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Admissible target paths in economic models
Article Abstract:
An economic policymaker finds it useful to know which of the factors in the economy can be predicted, or approximately predicted, over a course of time. Given a specific economic direction, the future of a policy along that direction can either be tracked, tracked within certain variables, or ultimately tracked given other variables. This study examines the various models which would allow tracking, and also methods of stabilizing variables within the model.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 1993
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Learning about monetary regime shifts in an overlapping wage contract model
Article Abstract:
Most studies of learning in the past have used analytic finite-samples, but this approach will not allow mapping over medium or long-term. This paper uses stochastic simulations to prepare a macro model to measure the effects of learning on agents during regime shifts. One conclusion is that learning increases a policy's efficacy, as agents are least likely to approximate rational expectations during their period of learning.
Publication Name: Journal of Economic Dynamics & Control
Subject: Economics
ISSN: 0165-1889
Year: 1993
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