| Budget Amount *help |
¥2,990,000 (Direct Cost: ¥2,300,000、Indirect Cost: ¥690,000)
Fiscal Year 2017: ¥780,000 (Direct Cost: ¥600,000、Indirect Cost: ¥180,000)
Fiscal Year 2016: ¥650,000 (Direct Cost: ¥500,000、Indirect Cost: ¥150,000)
Fiscal Year 2015: ¥1,560,000 (Direct Cost: ¥1,200,000、Indirect Cost: ¥360,000)
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| Outline of Final Research Achievements |
This research extends a New Keynesian model to allow for R&D-based endogenous technology. The model includes conventional shocks as well as technology news shocks. The research quantitatively analyzes short- and medium-run fluctuations.
The research has two main results. First, the model solves the "inflation persistence puzzle." It explains the persistence in inflation (the existence of the backward-looking term in the estimation of the new Keynesian Phillips curve) without relying on the ad hoc and empirically inconsistent assumptions made by conventional new Keynesian models. Second, the model solves the "disinflationary news shock puzzle." It explains the disinflationary effect of a news shock, which conventional new Keynesian models have difficulty explaining.
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