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1 Resources for

habit formation

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Optimal Monetary Policy In A Small Open Economy With Habit Formation And Nominal Rigidities: Introducing habit formation into an open economy macroeconomic model with price stickiness, it examines the characteristics of an optimal monetary policy. It finds that, first; the optimal policy rule entails interest rate smoothing and responds to the lagged values. Second, habit formation enriches the dynamics of the economy with a...; Tags: Policy, Habit Formation, Financial Planning, Financial Services, Finance; White papers 2003-01-01

Additional Resources

Habit Formation and the Persistence of Monetary Shocks: This paper studies the persistent effects of monetary shocks on output. Previous empirical literature documents this persistence, but standard general-equilibrium models with sticky prices fail to generate output responses beyond the duration of nominal contracts. The paper constructs and estimates a general-equilibrium model with price rigidities, habit formation, and costly...; Tags: Shock, Bank Of Canada, Financial Planning, Financial Services, Finance; White papers 2002-10-01
Habit Formation and Returns on Bonds and Stocks: This paper proposes a habit formation model that explains the failure of the expectations hypothesis documented by Campbell and Shiller (1991) and Fama and Bliss (1987). The model also produces positive excess returns on long-term bonds, an upward sloping average yield curve, and allows for realistic levels of time-variation in...; Tags: Bond, Stock, New York University, Investment, Finance; White papers 2002-05-15
From Equity Premium Puzzle to Expectations Puzzle: A General Equilibrium Production Economy With Stochastic Habit Formation: This paper develops a general equilibrium model for a representative agent, production economy with stochastic internal habit formation. The model describes a scale-independent economy, with a unique stochastic investment opportunity set. Local correlation between the stochastic interest rate and time-varying market price of risk can be determined endogenously and leads...; Tags: Bond, Equity, New York University, Investment, Financial Services, Finance; White papers 2000-05-22
A Parsimonious Macroeconomic Model for Asset Pricing: Habit Formation or Cross-sectional Heterogeneity?: This paper studies the asset pricing implications of a parsimonious two-agent macroeconomic model with two key features: limited participation in the stock market and heterogeneity in the elasticity of inter-temporal substitution. The parameter values for the model are taken from the business cycle literature and, in particular, are not calibrated...; Tags: Asset, Asset Pricing, University Of Rochester, Asset Management, Operational Planning, Business Operations; White papers 2003-09-01

How Total Is Your Quality Management?: Moving from Partial Quality Management to true Total Quality Management is exceptionally tough. True Total Quality Management produces dramatic results. But moving from PQM to TQM requires as much discipline, consistency, and new habit formation as moving from endless dieting. Planning and Reporting service and quality improvement must be approached...; Tags: Quality Management, Total Quality Management, Quality, Tqm/Six Sigma/ISO 9000, Business Operations, It Operations; White papers 2003-01-01
Life-Cycle Finance in Theory and in Practice: This paper draws upon the modern science of finance to address several important practical issues in personal finance. Chief among these is how much to save for retirement and how to invest those savings. The paper suggests ways that advances in the theory of finance combined with innovations in financial...; Tags: Theory, Social Science Electronic Publishing Inc., Financial Accounting, Finance; White papers 2002-04-01
Asset Pricing in a Neoclassical Model With Limited Participation: This paper shows that habit formation is perhaps not what it is commonly perceived to be an extension of preference specification for the representative agent. Rather it captures a dynamic interaction between aggregate financial income and aggregate labor income. The paper also shows that existing specifications of consumption habits can...; Tags: Asset, Asset Pricing, Income, Specification, New York University, Operational Accounting, Asset Management, Finance, Operational Planning, Business Operations; White papers 2001-09-19
References.(Financial Markets and the Real Economy): [1] A. B. Abel, "Asset prices under habit formation and catching up with the joneses," American Economic Review, vol. 80, pp. 38-42, 1990. [2] Y. Ait-Sahalia, J. Parker, and M. Yogo, "Luxury goods and the equity premium," Journal of Finance, vol. 59, pp. 2959-3004,...; Tags: asset, Campbell, cross-section, equity, FINANCE, financial, G., Hansen, Investment, M., manuscript, stock, University of Chicago; Research articles 2005-01-01
Dig In! Hands-On Soil Investigations.(Earth & Space Science)(Brief Article)(Book Review): Dig In! Hands-On Soil Investigations NSTA Press, Natural Resources Conservation Service, USDA GRADES K-4 Item No. PB159X ...; Tags: dirt, U.S. Department of Agriculture; Research articles 2006-01-01
The War Against Tobacco Slows: This post was written by Maggie Mahar and Niko Karvounis 2007 marked the first time in 50 years that less than 20% of Americans smoked. This is the good news. The bad news is that, just as the battle against smoking has entered what may be its most critical, final...; News items 2009-08-07