All Outputs (20)

Monetary Policy and Welfare with Heterogeneous Firms and Endogenous Entry (2024)
Journal Article
Cooke, D., & Damjanovic, T. (2024). Monetary Policy and Welfare with Heterogeneous Firms and Endogenous Entry. Journal of Money, Credit and Banking, https://doi.org/10.1111/jmcb.13158

This paper studies the welfare consequences of monetary policy in a sticky-wage New Keynesian model with heterogeneous firms and endogenously variable markups. Firm heterogeneity affects the volatility of the aggregate markup and the welfare benefit... Read More about Monetary Policy and Welfare with Heterogeneous Firms and Endogenous Entry.

Unconditionally Optimal Ramsey policy (2021)
Journal Article
Damjanovic, T., Damjanovic, V., & Nolanz, C. (2021). Unconditionally Optimal Ramsey policy. Journal of Macroeconomics, 69, Article 103346. https://doi.org/10.1016/j.jmacro.2021.103346

We discuss a time invariant policy which delivers the unconditionally optimal outcomes in purely forward-looking models and Ramsey outcomes in purely backward-looking models. This policy is a product of interaction between two institutions with disti... Read More about Unconditionally Optimal Ramsey policy.

Default, bailouts and the vertical structure of financial intermediaries (2020)
Journal Article
Damjanovic, T., Damjanovic, V., & Nolan, C. (2020). Default, bailouts and the vertical structure of financial intermediaries. Review of Economic Dynamics, 38, 154-180. https://doi.org/10.1016/j.red.2020.04.002

Should we break up banks and limit bailouts? We study vertical integration of deposit-taking institutions with those investing in risky equity. Integration eliminates a credit spread, reducing aggregate banking sector profitability; so while integrat... Read More about Default, bailouts and the vertical structure of financial intermediaries.

Optimal Fiscal Policy in a Model of Firm Entry and Financial Frictions (2019)
Journal Article
Cooke, D., & Damjanovic, T. (2020). Optimal Fiscal Policy in a Model of Firm Entry and Financial Frictions. Review of Economic Dynamics, 35, 74-96. https://doi.org/10.1016/j.red.2019.05.001

This paper studies firm entry with nancial frictions. We motivate our analysis by documenting that a fall in rm entry and a widening of the interest rate spread occur when there is a rise in idiosyncratic uncertainty. We then develop a model of rm en... Read More about Optimal Fiscal Policy in a Model of Firm Entry and Financial Frictions.

Economic Growth and Evolution of Gender Equality (2019)
Journal Article
Damjanovic, T., & Selvaretnam, G. (2020). Economic Growth and Evolution of Gender Equality. Manchester School, 88(1), 1-36. https://doi.org/10.1111/manc.12274

We present an evolutionary growth model where the degree of gender equality evolves towards the value maximising social output. It follows that a woman’s bar- gaining power should depend positively on her relative productivity. When an economy is les... Read More about Economic Growth and Evolution of Gender Equality.

The Macroeconomic Implications of Firm Selection (2018)
Preprint / Working Paper
Cooke, D., & Damjanovic, T. (2018). The Macroeconomic Implications of Firm Selection

This paper studies the macroeconomic implications of firm selection in a model with monopolistic competition and translog preferences. Firm selection magnifies the impact of aggregate technology shocks. Magnification is limited by diminishing returns... Read More about The Macroeconomic Implications of Firm Selection.

Unconditionally Optimal Ramsey policy (2017)
Preprint / Working Paper
Damjanovic, T., Damjanovic, V., & Nolan, C. (2017). Unconditionally Optimal Ramsey policy

We discuss a time invariant policy which delivers the unconditionally optimal outcomes in purely forward-looking models and Ramsey outcomes in purely backward-looking models. This policy is a product of interaction between two institutions with disti... Read More about Unconditionally Optimal Ramsey policy.

Risk Management and the Money Multiplier (2016)
Preprint / Working Paper
Damjanovic, T., Damjanovic, V., & Nolan, C. (2016). Risk Management and the Money Multiplier

The conventional model of bank liquidity risk management predicts a negative relation between the risk free rate and the money multiplier. We extend that model to reflect credit, or loan book, risk. We find that credit risk model predicts a positive co... Read More about Risk Management and the Money Multiplier.

Stationarity of econometric learning with bounded memory and a predicted state variable (2015)
Journal Article
Damjanovic, T., Girdėnas, S., & Liu, K. (2015). Stationarity of econometric learning with bounded memory and a predicted state variable. Economics Letters, 130, 93-96. https://doi.org/10.1016/j.econlet.2015.03.011

In this paper, we consider a model where producers set their prices based on their prediction of the aggregated price level and an exogenous variable, which can be a demand or a cost-push shock. To form their expectations, they use OLS-type econometr... Read More about Stationarity of econometric learning with bounded memory and a predicted state variable.

Ordering Policy Rules with an Unconditional Welfare Measure (2015)
Journal Article
Damjanovic, T., Damjanovic, V., & Nolan, C. (2015). Ordering Policy Rules with an Unconditional Welfare Measure. International journal of central banking, 11(1), 103-149

The unconditional expectation of social welfare is often used to assess alternative macroeconomic policy rules in applied quantitative research. This paper provides a detailed analysis of such policies. It sets out the unconditionally optimal (UO) po... Read More about Ordering Policy Rules with an Unconditional Welfare Measure.

Quantitative easing and the loan to collateral value ratio (2014)
Journal Article
Damjanovic, T., & Girdėnas, Š. (2014). Quantitative easing and the loan to collateral value ratio. Journal of Economic Dynamics and Control, 45, 146-164. https://doi.org/10.1016/j.jedc.2014.05.013

We study optimal monetary policy in a New Keynesian model at the zero bound interest rate where households use cash alongside house equity borrowing to conduct transactions. The amount of borrowing is limited by a collateral constraint. When either t... Read More about Quantitative easing and the loan to collateral value ratio.

Second Order Approximation to the Rotemberg Model around a Distorted Steady State. (2011)
Journal Article
Damjanovic, T., & Nolan, C. (2011). Second Order Approximation to the Rotemberg Model around a Distorted Steady State. Economics Letters, 110(2), 132-135

Tax Progressivity, Income Distribution and Tax Non-Compliance. (2010)
Journal Article
Damjanovic, T., & Ulph, D. (2010). Tax Progressivity, Income Distribution and Tax Non-Compliance. European Economic Review, 54(4, mAY 2010), 594-607

Seigniorage-maximizing inflation. (2010)
Journal Article
Damjanovic, T., & Nolan, C. (2010). Seigniorage-maximizing inflation. Journal of Money, Credit and Banking, 42(2-3), 503-519

Relative Price Distortions and Inflation Persistence. (2010)
Journal Article
Damjanovic, T., & Nolan, C. (2010). Relative Price Distortions and Inflation Persistence. The Economic Journal, 120(547), 1080-1099

Unconditionally Optimal Monetary Policy. (2008)
Journal Article
Damjanovic, T., Damjanovic, V., & Nolan, C. (2008). Unconditionally Optimal Monetary Policy. Journal of Monetary Economics, 55(3), 491-500. https://doi.org/10.1016/j.jmoneco.2008.01.003

We develop a simple and intuitive approach for analytically deriving unconditionally optimal (UO) policies, a topic of enduring interest in optimal monetary policy analysis. The approach can be employed in both general linear-quadratic problems and i... Read More about Unconditionally Optimal Monetary Policy..

ON THE POSSIBILITY OF PARETO-IMPROVING PENSION REFORM (2006)
Journal Article
Damjanovic, T. (2006). ON THE POSSIBILITY OF PARETO-IMPROVING PENSION REFORM. Manchester School, 74(6), 711-724. https://doi.org/10.1111/j.1467-9957.2006.00525.x

The aim of this paper is twofold. First, it provides a simple framework for the analyses of the transitions between two steady states with different fiscal policies. This allows us to clarify the existing results on the possibility of Pareto-improvin... Read More about ON THE POSSIBILITY OF PARETO-IMPROVING PENSION REFORM.

SOME WELFARE IMPLICATIONS OF OPTIMAL STABILISATION POLICY IN AN ECONOMY WITH CAPITAL AND STICKY PRICES (2006)
Journal Article
Damjanovic, T., & Nolan, C. (2006). SOME WELFARE IMPLICATIONS OF OPTIMAL STABILISATION POLICY IN AN ECONOMY WITH CAPITAL AND STICKY PRICES. Scottish Journal of Political Economy, 53(1), 47-71. https://doi.org/10.1111/j.1467-9485.2006.00370.x

Lorenz dominance for transformed income distributions: A simple proof (2005)
Journal Article
Damjanovic, T. (2005). Lorenz dominance for transformed income distributions: A simple proof. Mathematical Social Sciences, 50(2), 234-237. https://doi.org/10.1016/j.mathsocsci.2005.04.005

This article provides a simple proof of the Lorenz dominance criterion for two non-decreasing income transformations. The criterion is extended to the most general case, with only very mild restrictions on the form of initial income distribution or t... Read More about Lorenz dominance for transformed income distributions: A simple proof.

The Russian Financial Crisis and Its Consequences for Central Asia (2003)
Journal Article
Pastor, G., & Damjanovic, T. (2003). The Russian Financial Crisis and Its Consequences for Central Asia. Emerging Markets Finance and Trade, 39(3), 79-104. https://doi.org/10.1080/1540496x.2003.11052539

This paper reviews the economic conditions in central Asia at the time of the Russian financial crisis of August 1998, the channels by which the crisis was transmitted to the central Asian region, and the policy responses. The paper concludes that, a... Read More about The Russian Financial Crisis and Its Consequences for Central Asia.