The Term Structure of Real Interest Rates: Theory and Evidence from (2007)
Alex Monge, Marcelo Navarro, Antti Ripatti, Thomas J. Sargent, Pietro Veronesi
This paper studies the behavior of the default-risk free real term structure and term premia in two general equilibrium endowment economies with complete markets but without money. In the first...
Biased Technical Change and Capital-Labour Substitution in Finland, 1902-2003 (2006)
Jalava, Jukka, Pohjola, Matti, Ripatti, Antti, Vilmunen, Jouko
The paper argues that a Cobb-Douglas specification may be a reasonable description of the Finnish aggregate production function when a sufficiently long time period (the 20th century) is considered....
Biased Technical Change and Capital-Labour Substitution in Finland, 1902-2003 (2006)
Jalava, Jukka, Pohjola, Matti, Ripatti, Antti, Vilmunen, Jouko
The paper argues that a Cobb-Douglas specification may be a reasonable description of the Finnish aggregate production function when a sufficiently long time period (the 20th century) is considered....
Biased Technical Change and Capital-Labour Substitution in Finland, 1902-2003 (2006)
Jalava, Jukka, Pohjola, Matti, Ripatti, Antti, Vilmunen, Jouko
The paper argues that a Cobb-Douglas specification may be a reasonable description of the Finnish aggregate production function when a sufficiently long time period (the 20th century) is considered....
Biased Technical Change and Capital-Labour Substitution in Finland, 1902-2003 (2006)
Jalava, Jukka, Pohjola, Matti, Ripatti, Antti, Vilmunen, Jouko
The paper argues that a Cobb-Douglas specification may be a reasonable description of the Finnish aggregate production function when a sufficiently long time period (the 20th century) is considered....
Biased Technical Change and Capital-Labour Substitution in Finland, 1902-2003
Jukka Jalava, Matti Pohjola, Antti Ripatti, Jouko Vilmunen
The paper argues that a Cobb-Douglas specification may be a reasonable description of the Finnish aggregate production function when a sufficiently long time period (the 20th century) is considered....
Kilponen, Juha, Ripatti , Antti
Using the DGE model of the Finnish Economy (the ‘Aino’ model), we study the response of the economy to reforms in both labour and product markets. The reforms are two-fold. We assume that the...
Demographic Uncertainty and Labour Market Imperfections in Small Open Economy
Juha Kilponen, Helvi Kinnunen, Antti Ripatti
This paper extends Gertler's (1999) tractable overlapping generations model by allowing for imperfect labour markets and distortionary taxation. Furthermore, we allow for stochastic variation in...
Kilponen , Juha, Kinnunen , Helvi, Ripatti , Antti
This paper extends Gertler’s (1999) tractable overlapping generations model with life-cycle features by allowing for distortionary taxation, demographic transition and stochastic variation in...
On the Estimation of Euler Equations in the Presence of a Potential Regime Shift
Saikkonen, Pentti, Ripatti, Antti
The concept of a peso problem is formalized in terms of a linear Euler equation and a nonlinear marginal model describing the dynamics of the exogenous driving process. It is shown that, using a...
Vector Autoregressive Processes with Nonlinear Time Trends in Cointegrating Relations.
Ripatti, Antti, Saikkonen, Pentti
We extend the conventional cointegrated VAR model to allow for general nonlinear deterministic trends. These nonlinear trends can be used to model gradual structural changes in the intercept term of...
On the Estimation of Euler Equations in the Presence of a Potential Regime Shift.
Saikkonen, Pentti, Ripatti, Antti
The concept of a peso problem is formalized in terms of a linear Euler equation and a non-linear marginal model describing the dynamics of the exogenous variable driving the process. It is shown...
Declining labour share – Evidence of a change in underlying production technology?
Ripatti, Antti, Vilmunen, Jouko
The study demonstrates that the decline in the labour share in Finland can not be explained by the Cobb-Douglas production function. Instead, we propose an approach based on the...
Testing for a Valid Normalization of Cointegrating Vectors in Vector Autoregressive Processes.
Luukkonen, Ritva, Ripatti, Antti, Saikkonen, Pentti
This article develops test procedures for checking the validity of general normalizing restrictions imposed on cointegrating vectors in vector autoregressive processes. Such test procedures are of...
Cointegrated Vector Autoregressive Processes with Continuous Structural Changes
Ripatti, Antti, Saikkonen, Pentti
We extend the conventional cointegrated VAR model to allow for general nonlinear deterministic trends. These nonlinear trends can be used to model gradual structural changes in the intercept term of...
Stability of the demand for M1 and harmonized M3 in Finland
We derive a theoretical model for the demand for money using the adjustment cost augmented money-in-the-utility-function approach. The steady-state - utility function - parameters of the model of...
We compare parameter estimates of the intertemporal money-in-the-utility-function model estimated using the Generalized Method of Moments and the Full Information Maximum Likelihood method. The...
Stability of the Demand for M1 and Harmonized M3 in Finland
We derive a theoretical model for the demand for money using the money-in-the-utility-function approach. The steady-state – utility function – parameters of the model of narrow money (M1)...
Inflation Targeting and the Role of Money in a Model with Sticky Prices and Sticky Money
In order to study the role of money in an inflation targeting regime for monetary policy, we compare the interest rate and money as monetary policy instruments. Our dynamic stochastic general...
VECTOR AUTOREGRESSIVE PROCESSES WITH NONLINEAR TIME TRENDS IN COINTEGRATING RELATIONS
We extend the conventional cointegrated VAR model to allow for general nonlinear deterministic trends. These nonlinear trends can be used to model gradual structural changes in the intercept term of...
Biased Technical Change and Capital-Labour Substitution in Finland, 1902-2003
Jukka Jalava, Matti Pohjola, Antti Ripatti, Jouko Vilmunen
The paper argues that a Cobb-Douglas specification may be a reasonable description of the Finnish aggregate production function when a sufficiently long time period (the 20th century) is considered....