OxTalks will soon move to the new Halo platform and will become 'Oxford Events.' There will be a need for an OxTalks freeze. This was previously planned for Friday 14th November – a new date will be shared as soon as it is available (full details will be available on the Staff Gateway).
In the meantime, the OxTalks site will remain active and events will continue to be published.
If staff have any questions about the Oxford Events launch, please contact halo@digital.ox.ac.uk
Existing tractable DSGE models at the lower bound have been celebrated for their analytical clarity and associated graphical representations. We show that expectations in these models are crucial, but conflict with Professional Forecaster’s data. We develop a new stochastic algorithm that nests these contributions, but can accommodate the necessary endogenous persistence to match expectations data. We show how to construct analytical solutions and graphical representations in that context. Using these, we study the government spending multiplier in a DSGE model with habit formation that matches U.S/Japanese expectations data. We find output multipliers that are below one in each case.
