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Theoretical and empirical evaluation of credibility and reputation in macroeconomics

Theoretical and empirical evaluation of credibility and reputation in macroeconomics
Theoretical and empirical evaluation of credibility and reputation in macroeconomics

The thesis comprises six separate chapters and a concluding chapter.Chapter 1 gives an introduction to the recent developments on credibility and reputation.Chapter 2 extends a model of reputation by introducing wage contracting explicitly and reputational equilibria are derived.Chapter 3 analyses the credibility of policy announcements. If announcements are noisy, a credibility problem arises, and it is shown that announcements do not substitute for an active stabilization policy.Chapter 4 develops an interest rate model and applies this to the Danish economy with particular emphasis on credibility. The evidence supports that the Danish economic policy since 1982 has gained credibility gradually.Chapter 5 extends the analysis of Chapter 4. Superior tests of credibility are derived and it is confirmed that the Danish policy has gained credibility gradually.Chapter 6 analyses the Danish disinflationary policy but no evidence in favour of any credibility effects can be provided.Chapter 7 concludes the thesis. (DX83919)

University of Southampton
Christensen, Michael
Christensen, Michael

Christensen, Michael (1987) Theoretical and empirical evaluation of credibility and reputation in macroeconomics. University of Southampton, Doctoral Thesis.

Record type: Thesis (Doctoral)

Abstract

The thesis comprises six separate chapters and a concluding chapter.Chapter 1 gives an introduction to the recent developments on credibility and reputation.Chapter 2 extends a model of reputation by introducing wage contracting explicitly and reputational equilibria are derived.Chapter 3 analyses the credibility of policy announcements. If announcements are noisy, a credibility problem arises, and it is shown that announcements do not substitute for an active stabilization policy.Chapter 4 develops an interest rate model and applies this to the Danish economy with particular emphasis on credibility. The evidence supports that the Danish economic policy since 1982 has gained credibility gradually.Chapter 5 extends the analysis of Chapter 4. Superior tests of credibility are derived and it is confirmed that the Danish policy has gained credibility gradually.Chapter 6 analyses the Danish disinflationary policy but no evidence in favour of any credibility effects can be provided.Chapter 7 concludes the thesis. (DX83919)

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Published date: 1987

Identifiers

Local EPrints ID: 460686
URI: http://eprints.soton.ac.uk/id/eprint/460686
PURE UUID: 94313f5a-dc47-42e1-b857-20ba524b00f5

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Date deposited: 04 Jul 2022 18:27
Last modified: 04 Jul 2022 18:27

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Author: Michael Christensen

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