WorldCat Identities

Benhabib, Jess 1948-

Works: 191 works in 566 publications in 1 language and 3,187 library holdings
Roles: Author, Editor, Other, Honoree
Classifications: HB3711, 339.5
Publication Timeline
Most widely held works by Jess Benhabib
Handbook of social economics by Jess Benhabib( )

48 editions published between 2010 and 2014 in English and held by 458 WorldCat member libraries worldwide

Through the use of new economic data and tools, the contributors survey an array of social interactions and decisions that typify homo economicus. Their work brings order to the sometimes conflicting claims that countries, environments, beliefs, and other influences make on our economic decisions
Cycles and chaos in economic equilibrium( Book )

11 editions published between 1991 and 1992 in English and Undetermined and held by 376 WorldCat member libraries worldwide

Backward-looking interest-rate rules, interest-rate smoothing, and macroeconomic instability by Jess Benhabib( Book )

16 editions published in 2003 in English and held by 101 WorldCat member libraries worldwide

The existing literature on the stabilizing properties of interest-rate feedback rules has stressed the perils of linking interest rates to forecasts of future inflation. Such rules have been found to give rise to aggregate fluctuations due to self-fulfilling expectations. In response to this concern literature has focused on the stabilizing properties of interest-rate rules whereby the central bank responds to a measure of past inflation. The consensus view that has emerged is that backward-looking rules contribute to protecting the economy from embarking on expectations-driven fluctuations. A common characteristic of the existing studies that arrive at this conclusion is their focus on local analysis. The contribution of this paper is to conduct a more global analysis. We find that backward-looking interest-rate feedback rules do not guarantee uniqueness of equilibrium. We present examples in which for plausible parameterizations attracting equilibrium cycles exist. The paper also contributes to the quest for policy rules that guarantee macroeconomic stability globally. Our analysis indicates that policy rules whereby the interest rate is set as a function of the past interest rate and current inflation are likely to ensure global stability provided that the coefficient on lagged interest rates is greater than unity
Chaotic interest rate rules : expanded version by Jess Benhabib( )

11 editions published in 2004 in English and held by 94 WorldCat member libraries worldwide

A growing empirical and theoretical literature argues in favor of specifying monetary policy in the form of Taylor-type interest rate feedback rules. That is, rules whereby the nominal interest rate is set as an increasing function of inflation with a slope greater than one around an intended inflation target. This paper shows that such rules can easily lead to chaotic dynamics. The result is obtained for feedback rules that depend on contemporaneous or expected future inflation. The existence of chaotic dynamics is established analytically and numerically in the context of calibrated economies. The battery of fiscal policies that has recently been advocated for avoiding global indeterminacy induced by Taylor-type interest-rate rules (such as liquidity traps) are shown to be unlikely to provide a remedy for the complex dynamics characterized in this paper
Liquidity traps and expectation dynamics : fiscal stimulus or fiscal austerity? by Jess Benhabib( )

14 editions published in 2012 in English and held by 80 WorldCat member libraries worldwide

We examine global dynamics under infinite-horizon learning in New Keynesian models where the interest-rate rule is subject to the zero lower bound. As in Evans, Guse and Honkapohja (2008), the intended steady state is locally but not globally stable. Unstable deflationary paths emerge after large pessimistic shocks to expectations. For large expectation shocks that push interest rates to the zero bound, a temporary fiscal stimulus or a policy of fiscal austerity, appropriately tailored in magnitude and duration, will insulate the economy from deflation traps. However "fiscal switching rules" that automatically kick in without discretionary fine tuning can be equally effective
Optimal migration : a world perspective by Jess Benhabib( )

10 editions published in 2007 in English and held by 75 WorldCat member libraries worldwide

We ask what level of migration would maximize world welfare. We find that skill-neutral policies are never optimal. An egalitarian welfare function induces a policy that entails moving mainly unskilled immigrants into the rich countries, whereas a welfare function skewed highly towards the rich countries induces an optimal policy that entails a brain-drain from the poor countries. For intermediate welfare functions that moderately favor the rich however, it is optimal to have no migration at all
Age, luck, and inheritance by Jess Benhabib( )

10 editions published in 2008 in English and held by 72 WorldCat member libraries worldwide

We present a mechanism to analytically generate a double Pareto distribution of wealth in a continuous time OLG model with optimizing agents who have bequest motives, are subject to stochastic returns on capital and have uncertain lifespans. We disentangle, roughly, the contribution of inheritance, age and stochastic rates of capital return to wealth inequality, in particular to the Gini coefficient. We investigate the role of the fiscal and redistributive policies for wealth inequality and social welfare
Externalities and growth accounting by Jess Benhabib( )

7 editions published in 1989 in English and held by 71 WorldCat member libraries worldwide

Abstract: externality to the capital input. The model is an augmented version of Paul
The distribution of wealth and fiscal policy in economies with finitely lived agents by Jess Benhabib( )

7 editions published in 2009 in English and held by 69 WorldCat member libraries worldwide

We study the dynamics of the distribution of overlapping generation economy with finitely lived agents and inter-generational transmission of wealth. Financial markets are incomplete, exposing agents to both labor income and capital income risk. We show that the stationary wealth distribution is a Pareto distribution in the right tail and that it is capital income risk, rather than labor income, that drives the properties of the right tail of the wealth distribution. We also study analytically the dependence of the distribution of wealth, of wealth inequality in particular, on various fiscal policy instruments like capital income taxes and estate taxes. We show that capital income and estate taxes can significantly reduce wealth inequality. Finally, we characterize optimal redistributive taxes with respect to a utilitarian social welfaremeasure. Social welfare is maximized short of minimal wealth inequality and with zero estate taxes. Finally, we study the effects of different degrees of social mobility on the wealth distribution
Learning large deviations and rare events by Jess Benhabib( )

7 editions published in 2011 in English and held by 69 WorldCat member libraries worldwide

We examine the asymptotic distribution of estimated coefficients and endogenous variables in a dynamic self-referential model when agents learn adaptively using a constant gain stochastic gradient algorithm. The model environment can represent a number of economic models, including asset pricing models, that have been studied recently in the adaptive learning framework. The asymptotic distributions of forecasts and endogenous variables are characterized using techniques from linear recursions with multiplicative noise and large deviations, and are shown to exhibit fat tails
A note on regime switching, monetary policy, and multiple equilibria by Jess Benhabib( )

8 editions published in 2009 in English and held by 69 WorldCat member libraries worldwide

When monetary policy is subject to regime switches conditions for determinacy become more complex. Davig and Leeper (2007) and Farmer, Waggoner and Zha (2009a) have studied such conditons. Using some new results from stochastic processes, we characterize the moments of the stationary distribution of inflation under regime switiching to obtain conditions for indeterminacy that can be easily checked and interpreted in terms of expected values of Taylor coefficients. In the last section, we outline methods to compute the moments of stationary distributions in regime switching models of higher dimensions
Reestablishing the income-democracy nexus by Jess Benhabib( )

8 editions published in 2011 in English and held by 68 WorldCat member libraries worldwide

A number of recent empirical studies have cast doubt on the "modernization theory" of democratization, which posits that increases in income are conducive to increases in democracy levels. This doubt stems mainly from the fact that while a strong positive correlation exists between income and democracy levels, the relationship disappears when one controls for country fixed effects. This raises the possibility that the correlation in the data reflects a third causal characteristic, such as institutional quality. In this paper, we reexamine the robustness of the income-democracy relationship. We extend the research on this topic in two dimensions: first, we make use of newer income data, which allows for the construction of larger samples with more within-country observations. Second, we concentrate on panel estimation methods that explicitly allow for the fact that the primary measures of democracy are censored with substantial mass at the boundaries, or binary censored variables. Our results show that when one uses both the new income data available and a properly non linear estimator, a statistically significant positive income-democracy relationship is robust to the inclusion of country fixed effects
Financial constraints, endogenous markups, and self-fulfilling equilibria by Jess Benhabib( )

7 editions published in 2012 in English and held by 68 WorldCat member libraries worldwide

Abstract: We show that self-fulfilling equilibria and indeterminacy can easily arise in a simple financial accelerator model with reasonable parameter calibrations and without increasing returns in production. A key feature for generating indeterminacy in our model is the countercyclical markup due to the procyclical loan to output ratio. We illustrate, via simulations, that our financial accelerator model can generate rich business cycle dynamics, including hump-shaped output in response to demand shocks as well as serial autocorrelation in output growth rates
Sentiments and aggregate demand fluctuations by Jess Benhabib( )

8 editions published in 2012 in English and held by 67 WorldCat member libraries worldwide

Abstract: We formalize the Keynesian insight that aggregate demand driven by sentiments can generate output fluctuations under rational expectations. When production decisions must be made under imperfect information about aggregate demand, optimal decisions based on sentiments can generate stochastic self-fulfillng rational expectations equilibria in standard economies without aggregate shocks, externalities, persistent informational frictions, or even any strategic complementarity. Our general equilibrium model is deliberately simple, but could serve as a benchmark for more complicated equilibrium models with additional features
The Anatomy of Sentiment-Driven Fluctuations by Sushant Acharya( )

5 editions published in 2017 in English and held by 66 WorldCat member libraries worldwide

We characterize the entire set of linear equilibria of beauty contest games under general information structures. In particular, we focus on equilibria in which sentiments, that is self-fulfilling changes in beliefs that are orthogonal to fundamentals and exogenous noise, can drive aggregate fluctuations. We show that, under rational expectations, there exists a continuum of sentiment-driven equilibria that generate aggregate fluctuations. Without having to take a stance on the private information agents might possess, we provide a general characterization of necessary and sufficient conditions under which a change in sentiments can have prolonged effects on aggregate outcomes and when it can only have short-lived effects. In addition, we also provide a practical way to characterize these equilibria
Reconciling models of diffusion and innovation : a theory of the productivity distribution and technology frontier by Jess Benhabib( )

5 editions published in 2017 in English and held by 65 WorldCat member libraries worldwide

We study how innovation and technology diffusion interact to endogenously determine the productivity distribution and generate aggregate growth. We model firms that choose to innovate, adopt technology, or produce with their existing technology. Costly adoption creates a spread between the best and worst technologies concurrently used to produce similar goods. The balance of adoption and innovation determines the shape of the distribution; innovation stretches the distribution, while adoption compresses it. Whether and how innovation and diffusion contribute to aggregate growth depends on the support of the productivity distribution. With finite support, the aggregate growth rate cannot exceed the maximum growth rate of innovators. Infinite support allows for "latent growth": extra growth from initial conditions or auxiliary stochastic processes. While innovation drives long-run growth, changes in the adoption process can influence growth by affecting innovation incentives, either directly, through licensing excludable technologies, or indirectly, via the option value of adoption
Catch-up and fall-back through innovation and imitation by Jess Benhabib( )

7 editions published in 2012 in English and held by 64 WorldCat member libraries worldwide

Abstract: Will fast growing emerging economies sustain rapid growth rates until they (3z (Bcatch-up (3y (B to the technology frontier? Are there incentives for some developed countries to free-ride off of innovators and optimally (3z (Bfallback (3y (B relative to the frontier? This paper models agents growing as a result of investments in innovation and imitation. Imitation facilitates technology diffusion, with the productivity of imitation modeled by a catch-up function that increases with distance to the frontier. The resulting equilibrium is an endogenous segmentation between innovators and imitators, where imitating agents optimally choose to (3z (Bcatch-up (3y (B or (3z (Bfall-back (3y (B to a productivity ratio below the frontier
The monetary transmission mechanism by Jess Benhabib( Book )

17 editions published between 1996 and 1999 in English and held by 62 WorldCat member libraries worldwide

Uncertainty and sentiment-driven equilibria by Jess Benhabib( )

6 editions published in 2013 in English and held by 62 WorldCat member libraries worldwide

We construct a model to capture the Keynesian idea that production and employment decisions are based on expectations of aggregate demand driven by sentiments, and that realized demand follows from the production and employment decisions of firms. We cast the Keynesian idea into a simple model with imperfect information about aggregate demand and we characterize the rational expectations equilibria of this model. We find that the equilibrium is not unique despite the absence of any non-convexities or strategic complementarity in the model. In addition to multiple fundamental equilibria, there can be serially correlated stochastic equilibria driven by self-fulfilling consumer sentiments. Furthermore, these sentiment-driven equilibria are not based on randomizations of the fundamental equilibria
Private information and sunspots in sequential asset markets by Jess Benhabib( )

5 editions published in 2014 in English and held by 54 WorldCat member libraries worldwide

We study a model where some agents have private information about risky asset returns and trade to obtain capital gains, while others acquire the risky asset and hold it to maturity, forming expectations of returns based on market prices. We show that under such a structure, in addition to fully revealing rational expectations equilibria, there exists a continuum of equilibrium prices consistent with rational expectations, where the the asset prices are subject to sunspot shocks. Such sunspot shocks can generate persistent fluctuations in asset prices that look like a random walk in an efficient market
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Associated Subjects
Assets (Accounting)--Econometric models Business cycles--Econometric models Business cycles--Mathematical models Capital investments Democracy--Economic aspects Developing countries Diffusion of innovations--Economic aspects Economic development--Econometric models Economic development--Effect of technological innovations on Economic forecasting--Econometric models Economics Economics--Mathematical models Economics--Sociological aspects Economic stabilization Equilibrium (Economics)--Mathematical models Externalities (Economics) Fiscal policy Fiscal policy--Econometric models Human capital--Economic aspects Income distribution--Econometric models Industrial management--Econometric models Industrial productivity--Economic aspects Inflation (Finance)--Econometric models Information theory in economics--Econometric models Inheritance and succession--Economic aspects Input-output analysis Interest rates Interest rates--Econometric models Keynes, John Maynard, Labor supply--Economic aspects Learning--Econometric models Liquidity (Economics)--Econometric models Management Markup--Econometric models Monetary policy Monetary policy--Econometric models Monetary policy--Mathematical models Money--Mathematical models Money supply--Mathematical models Production functions (Economic theory) Production management--Econometric models Progressive taxation--Econometric models Quantity theory of money--Mathematical models Rate of return--Econometric models Rational expectations (Economic theory) Rational expectations (Economic theory)--Econometric models Technological innovations Technological innovations--Economic aspects United States Wealth--Econometric models
Cycles and chaos in economic equilibrium
Cycles and chaos in economic equilibrium
Alternative Names
Banhabib, Jess 1948-

Benhabib, J. 1948-

Benhabib, Jess. J. 1948-

Jess Benhabib economista turco

Jess Benhabib ekonomist turk

Jess Benhabib türkischer Wirtschaftswissenschaftler und Hochschullehrer

Jess Benhabib Turkish economist

Jess Benhabib Turks econoom

English (216)