Market Behaviour and Macroeconomic Modelling [Paperback]

Market Behaviour and Macroeconomic Modelling discusses several state-of-the-art developments in the modelling approach to market behaviour in macroeconomic modelling. Leading experts in this field, deal with the implications of market imperfections in commodity markets, capital markets and labour markets for macroeconomic modelling and stabilization policy. They demonstrate that incorporating market imperfections leads to very different policy recommendations than those derived from the standard perfect competition model.Preface Notes on the Contributors PART I: IMPERFECT COMPETITION (A) The Multiplier in an Economy with Monopolistic Output: Markets and Competitive Labour Markets; Marta Aloi, Huw Dixon and Phillip Lawler Imperfect Competition and Aggregate Price Equations; Ate Nieuwenhuis PART II: IMPERFECT COMPETITION (B) A Critical Assessment of the Role of Imperfect Competition in Macroeconomics; Dennis W. Carlton An International Comparative Analysis of the State of Competition; Robert C.G. Haffner and Peter A.G. van Bergeijk PART III: FINANCIAL MARKET IMPERFECTIONS The Importance of Credit for Macroeconomic Activity: Identification Through Heterogeneity; Simon Gilchrist and Egon Zakrajsek Investment and Debt Constraints: Evidence from Dutch Panel Data; Hans van Ees, Harry Garretsen, Leo de Haan and Elmer Sterken PART IV: LABOUR MARKET IMPERFECTIONS Sticky Consumption and Rigid Wages; Tore Ellingsen and Steinar Holden Structural Aspects of the Labour Markets of Five OECD Countries; Geert Ridder, Niels De Visser and Gerard Van den Berg PART V: SHORT-RUN RIGIDITIES Short-Run Rigidities and Long-Run Equilibrium in Large-Scale Macroeconometric Models; Keith B. Church, Peter R. Mitchell and Kenneth F. Wallis High and Low Skilled Labour in a Macroeconometric Model of the Netherlands; D.P. Broer, D.A.G. Draper, A. Houweling, F.H. Huizinga and P.A. De Jongh PART VI: INTERTEMPORAL MODELLING Uses and Limitations of Public Debt; Willem H. Buiter and Kenneth M. Kletzer Capil#6