Leith, Campbell

Monetary and fiscal policy interactions in a new Keynesian model with capital accumulation and non-Ricardian consumers by Campbell Leith ( Book )
6 editions published in 2006 in English and held by 39 libraries worldwide

Estimated general equilibrium models for the evaluation of monetary policy in the US and Europe by Campbell Leith ( Book )
8 editions published between 2001 and 2002 in English and held by 28 libraries worldwide
A persistent criticism of general equilibrium models of monetary policy which incorporate nominal inertia in the form of the New Keynesian Phillips Curce (NKPC) is that they fail to capture the extent of inflation inertia in the data. In this paper we derive a general equilibrium model based on optimising behaviour, but which also implies a data consistent NKPC. Specifically our model accounts for nominal inertia in both price and wage setting as well for habits in consumption. Using U.S. and European data from 1970 to 1998 our parameter estimates reveal that (i) there is relatively more inertia in pricesetting in Europe; (ii)wage contracts last longer in the US; (iii) the extend of backward-looking behaviour in price and wage setting is statistically significant but small in both the US and Europe; and (iv) significant habits effects are present in European consumption. Finally we simulate the effects of monetary policy and find that while the magnitude of the impact of monetary policy on the endogenous variables in our estimated models are similar to other econometric studies, the dynamic paths for variables display less inertia than is typically found in studies which use output gaps to proxy changes in marginal costs.

Estimated open economy new Keynesian Phillips curves for the G7 by Campbell Leith ( Book )
6 editions published between 2002 and 2003 in English and held by 20 libraries worldwide
In this paper we develop an open economy model of firms' pricing behaviour under imperfect competition. This allows us to introduce various terms of trade effects influencing the firm's pricing decision, in addition to labour costs which dominate most closed-economy specifications of the New Keynesian Phillips (NKPC) curve. Our analysis gives rise to a hybrid open economy NKPC which nests existing closed and open economy specifications adopted in empirical work. We estimate this specification for the G7 economies and find that the US, UK and Canada typically enjoy less inertia in price setting than the European G7 economies and Japan and that these estimates are both plausible and in line with survey evidence. We also find that the proportion of firms which use simple backward-looking rules of thumb in price setting is greater when the frequency of price change is smaller. Finally there is evidence of significant asymmetries in price setting amongst EMU members.

A sectoral analysis of price-setting behavior in US manufacturing industries by Campbell Leith ( Book )
4 editions published in 2003 in English and held by 19 libraries worldwide

Wage inequality and the effort incentive effects of technological progress by Campbell Leith ( Book )
5 editions published in 2001 in English and held by 16 libraries worldwide
To explain the rise in the college wage premium in developed economies in the past decades, the present paper examines the effects of technological progress on workers' effort incentives, which determine the effective labor supply. Five effort incentive effects of technological progress are identified, and through these we obtain a number of results. Firstly, we establish that wage inequality can increase following an acceleration in skill-neutral technology progress. Secondly, an increase in skill-biased technological progress means, (I) skilled wages overshoot, (II) unskilled wages undershoot, and hence (III) wage inequality overshoots their respective long-run values. Thirdly, endogenising the number of skilled and unskilled workers on the basis of economic incentives does not eliminate wage inequality even in the long run. Fourthly, we can obtain hysteresis effects in the determination of long-run wage inequality. Finally, government policies which raise the equilibrium rate of unemployment are likely to reduce the impact of technical progress on inequality, and this may help to explain the relative increase in inequality in the US and UK compared with other European economies. Our focus on the supply-side complements studies which emphasize the impact of skill-biased technological progress on relative demand for skill workers.

Taylor rules in the open economy by Campbell Leith ( Book )
6 editions published in 2002 in English and held by 9 libraries worldwide

Wage inequality and the effort incentive effects of technological progress by Cecilia García-Peñalosa ( Book )
3 editions published in 2001 in English and held by 7 libraries worldwide

Unemployment and the productivity slowdown : a labour supply perspective by Campbell Leith ( Book )
3 editions published in 2001 in English and held by 7 libraries worldwide

Interactions between monetary and fiscal policy rules by Campbell Leith ( Book )
2 editions published in 1999 in English and held by 7 libraries worldwide

Interactions between monetary and fiscal policy under flexible exchange rates by Campbell Leith ( Book )
3 editions published in 2002 in English and held by 6 libraries worldwide