Misallocation, Productivity and Development with Endogenous Production Techniques
In: Journal of development economics, Band 167, S. 103251
ISSN: 0304-3878
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In: Journal of development economics, Band 167, S. 103251
ISSN: 0304-3878
In: Journal of development economics, Band 127, S. 72-90
ISSN: 0304-3878
We study optimal policy design in a monetary model with heterogeneous preferences. In the model, financial markets are incomplete and households are heterogeneous with respect to their current consumption preferences and discount factors. The government controls the supply of money (liquid) and nominal bonds (illiquid), and households make optimal portfolio choices. We uncover that the two types of preference heterogeneity have distinct distributional consequences and different implications for the optimal monetary policy. While the heterogeneity in current consumption preferences pushes the economy towards a zero lower bound (ZLB) associated with nominal interest rates, the heterogeneity in discount factors moves the economy away from the ZLB. We characterize the optimal policy design and quantify the welfare losses associated with a binding ZLB - and thus also the potential welfare benefits of being able to implement negative interest rates. ; ISSN:0165-1889 ; ISSN:1879-1743
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In: Journal of economic dynamics & control, Band 134, S. 104289
ISSN: 0165-1889
In: The journal of development studies, Band 55, Heft 12, S. 2495-2512
ISSN: 1743-9140
World Affairs Online
In: The journal of development studies, Band 55, Heft 12, S. 2495-2512
ISSN: 1743-9140
In: Journal of development economics, Band 133, S. 162-186
ISSN: 0304-3878
In: Journal of international economics, Band 113, S. 1-19
ISSN: 0022-1996