FG Makroökonomik

11 Items

Recent Submissions
Central bank reputation, cheap talk and transparency as substitutes for commitment: Experimental evidence

Duffy, John ; Heinemann, Frank (2020-06-30)

We implement a repeated version of the Barro-Gordon monetary policy game in the laboratory and ask whether reputation serves as a substitute for commitment, enabling the central bank to achieve the efficient Ramsey equilibrium and avoid the inefficient, time-inconsistent one-shot Nash equilibrium. We find that reputation is a poor substitute for commitment. We then explore whether central bank ...

The one player guessing game: a diagnosis on the relationship between equilibrium play, beliefs, and best responses

Bosch-Rosa, Ciril ; Meissner, Thomas (2020-02-11)

Experiments involving games have two dimensions of difficulty for subjects in the laboratory. One is understanding the rules and structure of the game and the other is forming beliefs about the behavior of other players. Typically, these two dimensions cannot be disentangled as belief formation crucially depends on the understanding of the game. We present the one-player guessing game, a variat...

Studies on dynamic micro founded macroeconomics

Pfeiffer, Philipp Ludwig (2019)

This dissertation consists of five studies on dynamic micro founded macroeconomics. Micro founded macroeconomics is a flexible paradigm. It can be enriched by micro data, assess drivers of economic fluctuations, and is particularly suited for policy analysis. The studies contained in this dissertation contribute to all of these aspects. Chapter 1 outlines the contribution to contemporary sch...

Making the implicit explicit: A look inside the implicit discount rate

Schleich, Joachim ; Gassmann, Xavier ; Faure, Corinne ; Meissner, Thomas (2016-07-30)

Implicit discount rates (IDRs) are employed in energy models to capture household investment decisions, yet the factors behind the IDR and their respective implications for policy-making usually remain blurred and fractional. The proposed comprehensive framework distinguishes three broad categories of factors underlying the IDR for household adoption of energy-efficient technologies (EETs): pre...

The power of sunspots: An experimental analysis

Fehr, Dietmar ; Heinemann, Frank ; Llorente-Saguer, Aniol (2018-08-23)

In an experiment using a coordination game with extrinsic random signals (“sunspots”), we systematically vary the stochastic process generating these signals and measure how signals affect behavior. We find that sunspot equilibria emerge naturally with salient public signals. However, highly correlated private signals can also lead to sunspot-driven behavior, even when this is not an equilibriu...

Experiments in macroeconomics: methods and applications

Cornand, Camille ; Heinemann, Frank (2019-07-26)

This chapter lays out in what ways laboratory experiments can be useful for macroeconomics and discusses some of the methods used in such experiments. Among the main advantages are: bench-testing of alternative policies, capturing strategic uncertainty and biases from standard preferences or Bayesian updating, and accounting for heterogeneity in agents’ expectations and behavior. It is explaine...

Macroeconomic experiments

Heinemann, Frank ; Noussair, Charles (2015-11-09)

Purpose: The purpose of this paper is to introduce the upcoming symposium on experimental macroeconomics in the November issue. Design/methodology/approach: Experimental, survey of articles in the symposium. Findings: The paper describes how experiments can be used in macroeconomics. Originality/value: The paper discusses the rationale for using behavioral experiments in macroeconomics, and ...

Limited higher order beliefs and the welfare effects of public information

Cornand, Camille ; Heinemann, Frank (2015-11-09)

Purpose: In games with strategic complementarities, public information about the state of the world has a larger impact on equilibrium actions than private information of the same precision, because the former is more informative about the likely behavior of others. This may lead to welfare-reducing “overreactions” to public signals as shown by Morris and Shin (2002). Recent experiments on game...

Neural mechanisms mediating degrees of strategic uncertainty

Nagel, Rosemarie ; Brovelli, Andrea ; Heinemann, Frank ; Coricelli, Giorgio (2018-01)

In social interactions, strategic uncertainty arises when the outcome of one’s choice depends on the choices of others. An important question is whether strategic uncertainty can be resolved by assessing subjective probabilities to the counterparts’ behavior, as if playing against nature, and thus transforming the strategic interaction into a risky (individual) situation. By means of functional...

Monetary policy obeying the Taylor principle turns prices into strategic substitutes

Cornand, Camille ; Heinemann, Frank (2019-11-01)

Monetary policy affects the degree of strategic complementarity in firms’ pricing decisions if it responds to the aggregate price level. In normal times, when monopolistic competitive firms increase their prices, the central bank raises interest rates, which lowers demand and creates an incentive for firms to reduce their prices. Thereby, monetary policy reduces the degree of strategic compleme...

Equality over intentionality: The normative social preferences of neutral third-parties

Bosch-Rosa, Ciril (2018-11-14)

This paper studies whether intentionality is more prevalent than fairness in social preferences. We do this by introducing a new three-player game in which the choices of neutral third-party arbiters are isolated from any monetary or strategic concerns. This allows us to study the normative preferences of subjects, and to compare the relative weight they give to intentions and inequality. The r...