Arbeitspapier
Which parameters drive approximation inaccuracies?
This paper identifies parameters responsible for welfare reversals when the basic New Keynesian model is approximated. In our setting, a reversal occurs when the Ramsey policy under timeless perspective commitment ceases to be dominant against the Taylor rule after approximating the model. We find that the parameters involved are the degree of persistence in the autoregressive shock process and the labor elasticity of real output.
- Language
-
Englisch
- Bibliographic citation
-
Series: Jena Economic Research Papers ; No. 2010,093
- Classification
-
Wirtschaft
Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data)
Monetary Policy
Policy Objectives; Policy Designs and Consistency; Policy Coordination
- Subject
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optimal monetary policy
approximations
welfare analysis
timeless perspective
Geldpolitik
Zeit
Wohlfahrtseffekt
Neukeynesianische Makroökonomik
Theorie
- Event
-
Geistige Schöpfung
- (who)
-
Sienknecht, Sebastian
- Event
-
Veröffentlichung
- (who)
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Friedrich Schiller University Jena and Max Planck Institute of Economics
- (where)
-
Jena
- (when)
-
2010
- Handle
- Last update
- 10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Sienknecht, Sebastian
- Friedrich Schiller University Jena and Max Planck Institute of Economics
Time of origin
- 2010
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