NBER Working Papers by Jean-Jacques Laffont

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Working Papers

February 1980Disequilibrium Dynamics with Inventories and Anticipatory Price-Setting:Some Impirical Results
with Jerry R. Green: w0453
The basic assumption of this paper is an attempt to be specific about price formation while retaining a fixed-price, quantity-constrained equilibration in the short-run. The second theme of this paper is the role of inventories in macrodynamics a topic of long-recognized importance, but one which has not received much attention within the disequilibrium literature. We will analyze how the level of inventories interacts with the level of prices and wages, and how the spillover effects in a fixed-price equilibrium produce certain testable characteristics in macro time series data. We will argue that these can be used to discriminate between a model of the type we study and the analogous flexible-price system. In section 2 we set out the basic model and discuss its assumptions. Section 3 deri...

Published: Green, Jerry and Laffont, Jean-Jacques. "Disequilibrium and Anticipated Price-Setting." European Economic Review, Vol. XVI, No. 1, (May 1981), pp. 199-221.

May 1979Coherency Conditions In Simultaneous Linear Equation Models With Endogenous Switching Regimes
with C. Gourieroux, A. Monfort: w0343
In modeling disequilibrium macroeconomic systems which one would want to subject to econometric estimation one typically faces the problem of whether the structural model can determine a unique equilibrium. The problem inherits a special form because the regimes in which the equilibria can lie are each linear. By placing restrictions on the parameters that insure the uniqueness of such a solution for each value of the exogenous and random variables, we can improve the estimation procedure. This paper provides necessary and sufficient conditions for uniqueness -- or "coherency." These conditions are applied to a variety of models that have been prominent in the literature on econometrics with 'switching regimes' such as those of self-selectivity (Maddala), simultaneous equation tobit and pr...

Published: Gourieroux, C., J. J. Laffont, and A. Monfort. "Coherency Conditions In Simultaneous Linear Equation Models with Endogenous Switching Regimes." Econometrica, Vo. 48, No. 1, (1980), pp. 75-96. citation courtesy of

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