Journal Article An Empirical Characterization of the Dynamic Effects Changes in Government Spending and Taxes on Output Get access Olivier Blanchard, Blanchard Massachusetts Institute Technology National Bureau Economic Research Search for other works by this author on: Oxford Academic Google Scholar Roberto Perotti European University Centre Policy The Quarterly Economics, Volume 117, Issue 4, November 2002, Pages 1329–1368, https://doi.org/10.1162/003355302320935043 Published: 01 2002

IN HIS SURVEY ON RATIONAL EXPECTATIONS, R. Shiller indicates that the difficulty of obtaining explicit solutions for linear difference models under rational expectations may have hindered their use [14, p. 27]. The present paper attempts to remedy problem by giving solution an important subclass model refers as general model. Section 1 presents form which is derived and shows how particular can be put in this form. 2 gives together with conditions existence uniqueness. 1. THE MODEL given...

In this paper we examine the growth and dispersion of personal income in U.S. states regions since 1880 relate patterns for individual to behavior regions.Then analyze interplay between net migration economic growth.We study evolution gross state product 1963 aggregate productivity eight major sectors.The overall evidence weighs heavily favor convergence: poor tend grow faster terms per capita within sectors as well aggregates.The rate convergence is, however, not rapid: gap typical rich...

Two key facts about European unemployment must be explained: the rise in since 1960s, and heterogeneity of individual country experiences. While adverse shocks can potentially explain much unemployment, there is insufficient these to cross-country differences. Alternatively, while explanations focusing on labour market institutions current well, many pre-date unemployment. Based a panel for 20 OECD nations 1960 we find that interaction between crucial explaining both stylised facts.

Journal Article Lectures on Macroeconomics Get access Macroeconomics. By OLIVIER JEAN BLANCHARD and STANLEY FISCHER. (Cambridge, Mass. London: MIT Press, 1989. Pp. xiii + 650. £24.75 hardback. ISBN 0 262 02283 4.) David Gowland University of York Search for other works by this author on: Oxford Academic Google Scholar The Economic Journal, Volume 100, Issue 399, 1 March 1990, Pages 252–254, https://doi.org/10.2307/2233612 Published: 01 1990

Product and labor market deregulation reduce redistribute rents, leading economic players to adjust this new distribution. It typically comes with distribution dynamic effects. To study these effects, we build a macroeconomic model on two central assumptions: monopolistic competition in the goods market, which determines size of rents; bargaining rents. regulation entry costs degree competition. Labor power workers. We show effects deregulation. then use our results discuss political economy...

Most central banks perceive a trade‐off between stabilizing inflation and the gap output desired output. However, standard new Keynesian framework implies no such trade‐off. In that framework, is equivalent to welfare‐relevant gap. this paper, we argue property of which call divine coincidence , due special feature model: absence nontrivial real imperfections. We focus on one imperfection, namely, wage rigidities. When baseline model extended allow for rigidities, disappears, indeed face...

Over the past thirty years, macroeconomists thinking about aggregate labor market dynamics have organized their thought around two relations, Phillips curve and Beveridge curve. The curve, relation between unemployment vacancies, has very much played second fiddle. We think that emphasis is wrong. comes conceptually first contains essential information functioning of shocks affect it. Labor markets in United States are characterized by huge gross flows. Close to seven million workers move...

The Long and Large Decline in U.S. Output Volatility Olivier Blanchard John Simon Since the early 1980s economy has gone through two long expansions. first, from 1982 to 1990, lasted thirty-one quarters. second started 1991 and, although showing signs of faltering, recorded its fortieth quarter as this volume goes press is already longest expansion on record. One view that these expansions are simply result luck, an absence major adverse shocks over last twenty years. We argue more been at...

We characterize the macroeconomic performance of a set industrialized economies in aftermath oil price shocks 1970s and last decade, focusing on differences across episodes.We examine four different hypotheses for mild effects inflation economic activity recent increase oil: (a) good luck (i.e.lack concurrent adverse shocks), (b) smaller share production, (c) more flexible labor markets, (d) improvements monetary policy.We conclude that all have played an important role.

Current Account Deficits in the Euro Area:The End of Feldstein-Horioka Puzzle? Olivier Blanchard and Francesco Giavazzi In 2000-01 current account deficit Portugal reached 10 percent its GDP, up from 2-3 at start 1990s. These deficits are forecast to continue 8-9 range for indefinite future. Greece is not far behind. Its was equal 6-7 1-2 early 1990s, again, forecasts remain high, 5-6 range. This first time that some small member countries European Union have run large deficits. 1980s,...

European unemployment has been steadily increasing for the last fifteen years and is expected to remain very high many come. In this paper, we argue that fact implies shocks have much more persistent effects on than standard theories can possibly explain. We develop a theory explain such persistence, based distinction between insiders outsiders in wage bargaining. if wages are largely set by bargaining firms, which affect actual tend also equilibrium unemployment. then confront with both...

This paper investigates the relation between growth forecast errors and planned fiscal consolidation during crisis. We find that, in advanced economies, stronger has been associated with lower than expected. The is particularly strong, both statistically economically, early A natural interpretation that multipliers were substantially higher implicitly assumed by forecasters. weaker more recent years may part reflect learning forecasters smaller of