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Macroeconomic Dynamics Vol TRIM SIZE 6x9" Macroeconomic Dynamics Vol. Dynamics Vol. Macroeconomic VOLUME 22 , NUMBER 1 , JANUARY 2018 MACROECONOMIC DYNAMICS Volume 22 , Number 1 , January 2018 Contents Special Issue on Current Macroeconomic Challenges Edited by Giovanni Di Bartolomeo and Enrico Saltari ARTICLES Current Macroeconomic Challenges Giovanni Di Bartolomeo and Enrico Saltari 1 Overleveraging, Financial Fragility, and the Banking–Macro Link: Theory and Empirical Evidence 22 4 , No. MACROECONOMIC Stefan Mittnik and Willi Semmler Unraveling the Skill Premium 1 Peter McAdam and Alpo Willman 33 , January DYNAMICS Monetary Policy, Factor Substitution, and Convergence Rainer Klump and Anne Jurkat 63 Why is Optimal Growth Theory Mute? Restoring Its Rightful Voice Olivier de La Grandville 77 2018 Elasticity of Substitution and Technical Progress: Is There a Misspecification Pages Problem? Daniela Federici and Enrico Saltari 101 Stabilization and Commitment: Forward Guidance in Economies with Rational Expectations Andrew Hughes Hallett and Nicola Acocella 122 172 – 1 Optimal Inflation Targeting Rule under Positive Hazard Functions for Price Changes Giovanni Di Bartolomeo and Marco Di Pietro 135 Firms’ Endogenous Entry and Monopolistic Banking in a DSGE Model Carla La Croce and Lorenza Rossi 153 EDITOR: WILLIAM A. BARNETT Downloaded from https://www.cambridge.org/core. University of Athens, on 01 Oct 2021 at 15:59:22, subject to the Cambridge Core terms of use, available at https://www.cambridge.org/core/terms. https://doi.org/10.1017/S1365100518000068 MDY_22_1_cover.indd 1 29/01/18 7:54 PM TRIM SIZE 6x9" MACROECONOMIC DYNAMICS MACROECONOMIC DYNAMICS Editor: William A. Barnett, University of Kansas, Department of Economics, 356 Snow Hall, 1460 Jayhawk Notes for Contributors Boulevard, Lawrence, KS 66045–7523, USA, and The Center for Financial Stability, 1120 Avenue of the Americas, 4th Floor, New York, NY 10036, USA. Contributions. Contributions are welcome sion of the paper and that any person cited Authors are encouraged to use the follow- Book Review Editors: Michele Boldrin, Department of Economics, Washington University, One Brookings from all countries. They should be written as a source of personal communication has ing order for parentheses: {[(...)]}. Drive, St. Louis, MO 63130, and Universidad Carlos III, Madrid; Gregory D. Hess, President’s Office, Wabash in English. approved such citation; written authoriza- Tables and Figures. If possible, the pub- College, W. Wabash Avenue, Crawfordsville, IN 47933. 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References Advisory Editors: appear in the journal’s Supplements Series, Dynamics represent the opinions of the should be typed in alphabetical order in the Jean-Pascal Bénassy (CEPREMAP, Paris), Willem Buiter (London School of Economics and Political Science, having its own Special Issues Editors. An authors and should not be construed to style of the following examples: London), Francis X. Diebold (University of Pennsylvania), Steven Durlauf (University of Wisconsin), Douglas Gale electronic version of the journal will be reflect the opinions of the Editor, Advisory Monograph: published simultaneously with the paper Board, Editorial Board, or the Publisher. (New York University), Giancarlo Gandolfo (Accademia Nazionale dei Lincei, Rome), Roger Guesnerie (DELTA, version enabling immediate access to the Preparation of a Manuscript. The en- Stokey, Nancy L. and Robert E. Paris), Takatoshi Ito (University of Tokyo), Timothy Kehoe (University of Minnesota), Finn Kydland (Carnegie best current research in Macroeconomics. tire manuscript (including notes and refer- Lucas, Jr. with Edward Prescott (1989) Mellon University), Lung-Fei Lee (Ohio State University), Adrian Pagan (Sydney University, Australia), Robert Home Page. The journal has a home page ences) should be produced as double spaced Re-cursive Methods in Economic Dynamics. 1ϫ Cambridge, MA: Harvard University Press Townsend ( ), Mark Watson ( ), Kenneth West on the web which is a source of further typescript on 8–2 11-inch or A4 white paper, Massachusetts Institute of Technology Princeton University information about the journal. The location with wide margins to accommodate Chapter in an Edited Volume: (University of Wisconsin), Michael Woodford (Columbia University), Randall Wright (University of Wisconsin, of the home page is: http://econ.tepper.cmu. copyediting. 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