IDEAS home Printed from https://ideas.repec.org/a/jns/jbstat/v218y1999i1-2p147-167.html
   My bibliography  Save this article

Policy Shocks in a Monetary Asset-Pricing Model with Endogenous Production / Politikeffekte in einem monetären Asset-Pricing-Modell mit Produktion

Author

Listed:
  • Schittko Ulrich K.
  • Müller Markus

    (Universität Augsburg, Wirtschafts- und Sozialwissenschaftliche Fakultät, Universitätsstr. 16, D-86159 Augsburg)

Abstract

In a framework of a monetary asset pricing model with production the effects of monetary and fiscal policy shocks are investigated. The model is kept simple enough to generate explicit formulae for the equilibrium price functions. With money yielding liquidity services in the exchange process real stock prices are negatively correlated with stochastic fiscal policy changes, while the impact of structural fiscal policy on the stock market depends on the level of private consumption in the economy. Moreover, shares provide protection against inflation from monetary shocks, and a suitably chosen structural fiscal policy can be used to achieve a stabilization of the real rates of return of both assets.

Suggested Citation

  • Schittko Ulrich K. & Müller Markus, 1999. "Policy Shocks in a Monetary Asset-Pricing Model with Endogenous Production / Politikeffekte in einem monetären Asset-Pricing-Modell mit Produktion," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 218(1-2), pages 147-167, February.
    • Handle: RePEc:jns:jbstat:v:218:y:1999:i:1-2:p:147-167
    as

    Download full text from publisher

    File URL: https://www.degruyter.com/view/j/jbnst.1999.218.issue-1-2/jbnst-1999-1-209/jbnst-1999-1-209.xml?format=INT
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Markus Mueller & Ulrich K. Schittko, 1999. "Transmission of Policy Shocks in a Monetary Asset-Pricing Model," Discussion Paper Series 188, Universitaet Augsburg, Institute for Economics.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jns:jbstat:v:218:y:1999:i:1-2:p:147-167. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.degruyter.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.