Liquidity Preference and Persistent Unemployment with Dynamic Optimizing Agents
Standard money-in-utlity dynamic models assume satiable liquidity preference, and thereby prove the existence of a full employment steady state. Using the same model, Ono (1994) shows that under insatiable liquidity preference there is a case where a full employment steady state does not exist and then unemployment persistently occurs. Using both parametric and nonparametric methods this paper empirically finds that insatiable liquidity preference is strongly supported. Thus, without assuming any permanent distortion as Old and New Keynesians do, we can analyze an effective demand shortage in a dynamic optimization framework.
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1998|
|Contact details of provider:|| Postal: 6-1 Mihogaoka, Ibaraki, Osaka 567-0047|
Web page: http://www.iser.osaka-u.ac.jp/index-e.html
More information through EDIRC