Browsing by Subject "E10"

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  • Kilponen, Juha (2020)
    BoF Economics Review 3/2020
    Koronaviruksen taltuttamisen seurauksena talouttamme on kohdannut samanaikaisesti ennennäkemätön tarjonta-, kysyntä- ja rahoitusmarkkinahäiriö, joka leikkaa ison loven talouteemme. Talousvaikutusten arviointi edellyttää tietoa epidemian kestosta, jota mallinnetaan epidemiakäyrän avulla. Epidemian kesto, rajoitustoimien tehokkuus, talouspolitiikka ja kansalaisten valinnat yhdessä ratkaisevat, kuinka suureksi koronakriisin kansantaloudelliset kustannukset lopulta muodostuvat. Yksityisen ja julkisen sektorin taseiden heikkeneminen kriisin aikana hidastaa talouden elpymistä taantumasta. Osa tuotantomenetyksistä jää pysyviksi.
  • Verona, Fabio (2013)
    Bank of Finland Research Discussion Papers 16/2013
    In this paper, I introduce lumpy micro-level capital adjustment into a sticky information general equilibrium model. Lumpy adjustment arises because of inattentiveness in capital investment decisions instead of the more common assumption of non-convex adjustment costs. The model features inattentiveness as the only source of stickiness. I find that the model with lumpy investment yields business cycle dynamics which differ substantially from those of an otherwise identical model with frictionless investment and are much more consistent with the empirical evidence. These results therefore strengthen the case in favour of the relevance of microeconomic investment lumpiness for the business cycle. Keywords: sticky information, general equilibrium, lumpy investment, business cycle JEL classification: D83, E10, E22, E32
  • Waters, George A. (2012)
    Bank of Finland Research Discussion Papers 3/2012
    Quantity rationing of credit, when firms are denied loans, has greater potential to explain macroeconomics fluctuations than borrowing costs. This paper develops a DSGE model with both types of financial frictions. A deterioration in credit market confidence leads to a temporary change in the interest rate, but a persistent change in the fraction of firms receiving financing, which leads to a persistent fall in real activity. Empirical evidence confirms that credit market confidence, measured by the survey of loan officers, is a significant leading indicator for capacity utilization and output, while borrowing costs, measured by interest rate spreads, is not. Key Words: quantity rationing, credit, VAR JEL Codes: E10, E24, E44, E50
  • Vetlov, Igor (2004)
    BOFIT Discussion Papers 13/2004
    This paper presents preliminary results of modelling the Lithuanian block of the ESCB Multi-Country Model, LT_MCM.The theoretical structure of the LT_MCM is in line with most current mainstream macro models, i.e. supply factors determine the long-run equilibrium, while output is demand determined in the short run. Starting with a brief overview of the common features and main building blocks of a typical MCM country model block, we report the preliminary results of estimation of the Lithuanian MCM block.To illustrate the main characteristics of the estimated model, some standard shocks are introduced in the model and the responses studied.Compared to other MCM country blocks, we find that the Lithuanian macro model is characterised by relatively large and rapid response to shocks.Model simulation reveals that, compared to domestic prices, GDP is more responsive to shocks in the short run, while investment on average is more volatile than private consumption.The latter findings are similar to those reported for other EU country macro models. JEL classification: E10, E13, C5 Keywords: Macro Model, Lithuania
  • Kilponen, Juha; Virén, Matti (2008)
    Bank of Finland Research Discussion Papers 13/2008
    Published in Empirica, Volume 37, Number 3, July 2010, pp. 311-328
    We estimate a standard production function with a new cross-country data set on business sector production, wages and R&D investment for a selection of 14 OECD countries including the United States. The data sample covers the years 1960-2004. The data suggest that growth differences can largely be explained by capital deepening and an ability to produce new technology in the form of new patents. The importance of patents is magnified by the openness of the economy. We find some evidence of increasing elasticity of substitution over time, all though the results are sensitive to assumptions on the nature of technological progress. Keywords: growth, R&D, production function, patents JEL classification numbers: O40, E10, O43