Chapter

5 U.S. Wealth Effects

Ray C. Fair

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Estimating How the Macroeconomy Works

This chapter is in the book Estimating How the Macroeconomy Works

© 2021 by the President and Fellows of Harvard College

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© 2021 by the President and Fellows of Harvard College

You are currently not able to access this content.

Chapters in this book

Frontmatter i
Contents v
Tables ix
Figures xi
Preface xiii
Abbreviations xv
1 Introduction 1
2 The MC Model 16
3 Interest Rate Effects 61
4 Testing the NAIRU Model 67
5 U.S. Wealth Effects 80
6 Testing for a New Economy in the 1990s 85
7 A "Modern" View of Macroeconomics 101
8 Estimated European Inflation Costs 108
9 Stochastic Simulation and Bootstrapping 114
10 Certainty Equivalence 130
11 Evaluating Policy Rules 134
12 EMU Stabilization Costs 147
13 RE Models 154
14 Model Comparisons 163
15 Conclusion 173
Appendix A The US Model 179
Appendix B The ROW Model 239
References 285
Index 293

https://doi.org/10.4159/9780674036635-009

Chapters in this book

Frontmatter i
Contents v
Tables ix
Figures xi
Preface xiii
Abbreviations xv
1 Introduction 1
2 The MC Model 16
3 Interest Rate Effects 61
4 Testing the NAIRU Model 67
5 U.S. Wealth Effects 80
6 Testing for a New Economy in the 1990s 85
7 A "Modern" View of Macroeconomics 101
8 Estimated European Inflation Costs 108
9 Stochastic Simulation and Bootstrapping 114
10 Certainty Equivalence 130
11 Evaluating Policy Rules 134
12 EMU Stabilization Costs 147
13 RE Models 154
14 Model Comparisons 163
15 Conclusion 173
Appendix A The US Model 179
Appendix B The ROW Model 239
References 285
Index 293

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