74 results
Search Results
2. Working Papers Series Abstracts.
- Subjects
- *
ECONOMICS , *AUTOMATED teller machines , *BANK service charges , *PRICES , *PUBLIC spending - Abstract
Presents abstracts of economic research. "The Welfare Consequences of ATM Surcharges: Evidence From a Structural Entry Model"; "On Using Relative Prices to Measure Capital-Specific Technological Progress"; "Government Consumption Expenditures and the Current Account."
- Published
- 2006
3. Working Papers Series Abstracts.
- Subjects
- *
ECONOMICS , *REGIONAL economics , *BANKING industry , *FINANCIAL markets , *ASSETS (Accounting) - Abstract
Presents abstract of several articles on the world economy. "Does Regional Economic Performance Affect Bank Conditions? New Analysis of an Old Question," by Mary C. Daly, John Kraner and Jose A. Lopez; "Using Securities Market Information for Bank Supervisory Monitoring," by John Krainer and Jose A. Lopez; "Lock-in of Extrapolative Expectations in an Asset Pricing Model," by Kevin J. Lansing.
- Published
- 2005
4. Center for Pacific Basin Studies Working Papers Abstracts.
- Subjects
- *
ECONOMICS , *FINANCE - Abstract
Presents abstracts on economics and finance in Asia and the Pacific. 'Asian Finance and the Role of Bankruptcy,' by Thomas F. Cargill and Elliott Parker; 'A Cure Worse than the Disease? Currency Crises and the Output Costs of IMF-Supported Stabilization Programs,' by Michael Hutchison; Structural Changes and the Scope of Inflation Targeting in Korea,' by Gongpil Choi; 'Foreign Exchange: Macro Puzzles, Micro Tools,' by Richard K. Lyons.
- Published
- 2002
5. Working Papers Series Abstracts.
- Subjects
- *
ECONOMICS , *FINANCE - Abstract
Presents abstracts on economics and finance. 'The Federal Reserve Banks' Imputed Cost of Equity Capital,' by Edward J. Green, Jose A. Lopez and Zhenyu Wang; 'Forward-looking Behavior and the Optimality of the Taylor Rule,' by Kevin J. Lansing and Bharat Trehan; 'Solvency Runs, Sunspot Runs, and International Bailouts,' by Mark M. Spiegel; 'The Supplemental Security Income Program,' by May C. Daly and Richard Burkhauser.
- Published
- 2002
6. Working Papers Series Abstracts.
- Subjects
- *
ECONOMICS , *BANKING industry , *MONETARY policy , *HEALTH insurance - Abstract
Presents several abstracts on economic research. 'The Potential Diversification and Failure Reduction Benefits of Bank Expansion Into Nonbanking Activities,' by Elizabeth S. Laderman; 'Assessing Nominal Income Rules for Monetary Policy with Model and Data Uncertainty,' by Glenn D. Rudebusch; 'Union Effects on Health Insurance Provision and Coverage in the United States,' by Thomas C. Buchmueller, John DiNardo and Robert G. Valletta.
- Published
- 2001
7. Working Papers Series Abstracts.
- Subjects
- *
ECONOMICS , *MONETARY unions , *MONETARY policy , *BANKING industry - Abstract
Presents several abstracts of articles on economics. 'Optical Indicators of Socioeconomic Status for Health Research,' by Mary C. Daly, Greg J. Duncan, Peggy McDonough and David Williams; 'The Ins and Outs of Joining a Monetary Union,' by Mark M. Spiegel; 'Is the Fed Too Timid? Monetary Policy in an Uncertain World,' by Glenn D. Rudesbusch; 'The Role of Relative Performance in Bank Closure Decisions,' by Kenneth Kasa and Mark M. Spiegel.
- Published
- 2000
8. Conference Overview and Summary of Papers.
- Author
-
Groshen, Erica L., Lalani, Zahir, and Murchison, David
- Subjects
- *
ECONOMICS , *ECONOMIC policy - Abstract
Introduces a series of articles on economics and other related topics.
- Published
- 2005
9. Research papers.
- Subjects
- *
ECONOMICS , *FINANCE - Abstract
Lists research papers dealing with economics and finance issues. Includes `A Simple Model of Conflicting Horizons,' by S. Brock Blomberg; `Explaining the Growing Gap Between Low-Skilled and High-Skilled Wages,' by David Brauer and Susan Hickok; `Perspectives on U.S. External Deficits,' by M.A. Akhtar.
- Published
- 1995
10. Measuring Capital Adequacy Supervisory Stress Tests in a Basel World.
- Author
-
Wall, Larry D.
- Subjects
- *
STRESS management , *INTEREST rates , *PSYCHOLOGICAL tests , *INTEREST rate risk , *ECONOMIC indicators , *FEDERAL funds market (U.S.) , *ECONOMICS - Abstract
The United States is now committed to using two relatively sophisticated approaches to measuring capital adequacy: Basel III and stress tests. This paper shows how stress testing could mitigate weaknesses in the way Basel III measures credit and interest rate risk, the way it measures bank capital, and the way it creates countercyclical capital buffers. However, this paper also emphasizes the extent to which stress tests add value will depend upon the exercise of supervisor discretion in the design of stress scenarios. Whether supervisors will use this discretion more effectively than they have used other tools in the past remains to be seen. [ABSTRACT FROM AUTHOR]
- Published
- 2013
11. Computing Dynamic Heterogeneous-Agent Economies: Tracking the Distribution.
- Author
-
Gordon, Grey
- Subjects
- *
ECONOMICS , *ECONOMIC models , *WEALTH , *FEDERAL Reserve banks , *INDUSTRIAL productivity - Abstract
The article introduces a method for computing equilibrium in dynamic heterogeneous-agent economies by including an entire distribution if finite-dimensional or a fine approximation if it is infinite-dimensional, as a state variable. Topics covered include the capability of the model in accurately computing equilibrium, the feasibility of the model for an economy where households face occasionally binding constraints, and the application of Smolyak's algorithm presented in the paper.
- Published
- 2020
- Full Text
- View/download PDF
12. Reducing Foreclosures: No Easy Answers.
- Author
-
Foote, Christopher, Gerardi, Kristopher, Goette, Lorenz, and Willen, Paul
- Subjects
- *
FORECLOSURE , *CRISES , *MORTGAGE loans , *VENDORS (Real property) , *CONDITIONAL sales , *ECONOMETRIC models , *INVESTORS , *UNEMPLOYMENT , *LOANS , *FINANCIAL aid , *ECONOMICS - Abstract
This paper takes a skeptical look at a leading argument about what is causing the foreclosure crisis and what should be done to stop it. We use an economic model to focus on two key decisions: the borrower's choice to default on a mortgage and the lender's subsequent choice whether to renegotiate or modify the loan. The theoretical model and econometric analysis illustrate that unaffordable loans, defined as those with high mortgage payments relative to income at origination, are unlikely to be the main reason that borrowers decide to default. In addition, this paper provides theoretical results and empirical evidence supporting the hypothesis that the efficiency of foreclosure for investors is a more plausible explanation for the low number of modifications to date than contract frictions related to securitization agreements between servicers and investors. While investors might be foreclosing when it would be socially efficient to modify, there is little evidence to suggest they are acting against their own interests when they do so. An important implication of our analysis is that policies designed to reduce foreclosures should focus on ameliorating the immediate effects of job loss and other adverse life events rather than modifying loans to make them more affordable on a long-term basis. [ABSTRACT FROM AUTHOR]
- Published
- 2009
13. Reserve Requirements, Bank Runs, and Optimal Policies in Small Open Economies.
- Author
-
Ganapolsky, Eduardo J. J.
- Subjects
- *
BANKING industry , *RISK premiums , *LIQUIDITY (Economics) , *ECONOMICS , *RESERVE requirements , *BANK reserves - Abstract
This paper rationalizes as the outcome of an optimal policy decision the pattern of reserve requirements and other macroeconomic variables in the aftermath of a bank run. The paper develops a general equilibrium model that departs from the standard small open economy (SOE) model in three dimensions: (i) capital mobility is not perfect, (ii) there exists a costly banking system, and (iii) there is an externality affecting individual banks' decisions. The results suggest that the path of reserve requirements would depend on the type of shock that the economy receives and the effect that this shock produces on the interest rate. Interestingly, the size of the risk premium will affect the reaction of the economy to the shock. It is also shown that the dynamic adjustment will be slightly different for permanent and temporary shocks, and it will also depend on the access that the economy has to foreign funds. [ABSTRACT FROM AUTHOR]
- Published
- 2003
14. Drifts and Volatilities: Monetary Policies and Outcomes in the Post WWII U.S.
- Subjects
- *
MONETARY policy , *UNEMPLOYMENT , *PRICE inflation , *INTEREST rates , *ECONOMICS - Abstract
This paper extends the model of Cogley and Sargent to incorporate stochastic volatility and then estimates it for post World War II U.S. data in order to shed light on the following questions. Have aggregate time series responded through time-invariant linear impulse response functions to possibly heteroskedastic shocks? Or is it more likely that the impulse responses to shocks themselves have evolved over time because of drifting coefficients or other nonlinearities? Evidence is presented that shock variances evolved systematically over time, and so did the autoregressive coefficients of VARS. The conclusion is that much of our earlier evidence for drifting coefficients survives after we take stochastic volatility into account. This paper accumulates evidence inside an atheoretical statistical model. The patterns of time variation used revolve around whether it was bad monetary policy or bad luck that made inflation-unemployment outcomes worse in the 1970's than before or after.
- Published
- 2003
15. Center for Pacific Basin Studies Working Papers Abstracts.
- Subjects
- *
ECONOMICS , *RESEARCH , *FOREIGN exchange market , *MACROECONOMICS , *DISCLOSURE , *BANKING industry - Abstract
Presents abstracts of research on economics. "Effectiveness of Official Daily Foreign Exchange Market Intervention Operations in Japan," by Rasmus Fatum and Michael Hutchison; "Macroeconomic Effects of IMF-Sponsored Programs in Latin America: Output Costs, Program Recidivism, and the Vicious Cycle of Failed Stabilization," by Michael Hutchison and Ilan Noy; "Determinants of Voluntary Bank Disclosure: Evidence From Japanese Shinkin Banks," by Mark Spiegel and Nobuyoshi Yamori.
- Published
- 2004
16. Center for Pacific Basin Studies Working Papers Abstracts.
- Subjects
- *
ECONOMICS , *MACROECONOMICS , *BANKING industry - Abstract
Presents several abstracts on economic research in Asia. 'The Evolution of "Too-Big-To-Fail" Policy in Japan: Evidence from Market Equity Values,' by Mark M. Spiegel and Nobuyoshi Yamori; 'Pegging and Macroeconomic Performance in East Asia,' by Ramon Moreno; 'Financial Turbulence and the Japanese Main Bank Relationship,' by Mark M. Spiegel and Nobuyoshi Yamori.
- Published
- 2001
17. Center for Pacific Basin Studies Working Papers Abstracts.
- Subjects
- *
ECONOMICS , *BANKING industry - Abstract
Presents several abstracts of articles on economics. 'Are All Banking Crises Alike? The Japanese Experience in International Comparison,' by Michael Hutchison and Kathleen McDill; 'Sterilization Costs and Exchange Rate Targeting,' by Kenneth Kletzer and Mark Spiegel; Is It True that Insurers Benefit from a Catastrophic Event? Market Reactions to the 1995 Hanshin-Awaji Earthquake,' by Nobuyoshi Yamori and Takeshi Kobayashi.
- Published
- 2000
18. Foreclosure Externalities: Some New Evidence.
- Author
-
Gerardi, Kristopher, Rosenblatt, Eric, Willen, Paul S., and Yao, Vincent W.
- Subjects
- *
FORECLOSURE , *MORTGAGES , *HOME prices , *PRICES , *REAL property sales & prices , *HOMEOWNERS , *ECONOMICS , *ECONOMIC history - Abstract
In a recent set of influential papers, researchers have argued that residential mortgage foreclosures reduce the sale prices of nearby properties. We revisit this issue using a more robust identification strategy combined with new data that contain information on the location of properties secured by seriously delinquent mortgages and information on the condition of foreclosed properties. We find that while properties in virtually all stages of distress have statistically significant, negative effects on nearby home values, the magnitudes are economically small, peak before the distressed properties complete the foreclosure process, and go to zero about a year after the bank sells the property to a new homeowner. The estimates are very sensitive to the condition of the distressed property, with a positive correlation existing between house price growth and foreclosed properties identified as being in "above average" condition. We argue that the most plausible explanation for these results is an externality resulting from reduced investment by owners of distressed property. Our analysis shows that policies that slow the transition from delinquency to foreclosure likely exacerbate the negative effect of mortgage distress on house prices. [ABSTRACT FROM AUTHOR]
- Published
- 2012
19. Federal Home Loan Bank Advances and Commercial Bank Portfolio Composition.
- Author
-
Frame, W. Scott, Hancock, Diana, and Passmore, Wayne
- Subjects
- *
FEDERAL home loan banks , *BANK investments , *AUTOREGRESSION (Statistics) , *VECTOR analysis , *GOVERNMENT-sponsored enterprises , *MORTGAGE loans , *MORTGAGE banks , *FEDERAL government , *ECONOMICS - Abstract
This paper considers the role of Federal Home Loan Bank (FHLB) advances in stabilizing their commercial bank members' residential mortgage lending activities. Our theoretical model shows that using mortgage-related membership criteria or requiring mortgage-related collateral does not ensure that FHLB advances will be put to use for stabilizing members' financing of housing. Using panel vector autoregression (VAR) techniques, we estimate recent dynamic responses of U.S. bank portfolios to FHLB advance shocks, bank lending shocks, and macroeconomic shocks. Our empirical findings suggest that FHLB advances are just as likely to fund other types of bank credit as to fund single-family mortgages. [ABSTRACT FROM AUTHOR]
- Published
- 2007
20. Understanding the New Keynesian Model When Monetary Policy Switches Regimes.
- Author
-
Farmer, Roger E. A., Waggoner, Daniel F., and Tao Zha
- Subjects
- *
KEYNESIAN economics , *MONETARY policy , *PRICE inflation , *ECONOMIC policy , *CENTRAL banking industry , *INTEREST rates , *BANKING industry , *ECONOMICS - Abstract
This paper studies a New Keynesian model in which monetary policy may switch between regimes. We derive sufficient conditions for indeterminacy that are easy to implement and we show that the necessary and sufficient condition for determinacy, provided by Davig and Leeper, is necessary but not sufficient. More importantly, we use a two-regime model to show that indeterminacy in a passive regime may spill over to an active regime no matter how active the latter regime is. As a result, a passive monetary policy is more damaging than has been previously thought. Our results imply that the propagation of shocks in an active regime, such as that of the Federal Reserve in the post-1982 period, may be substantially affected by the possibility of a return to a passive regime of the kind that was followed in the 1960s and 1970s. [ABSTRACT FROM AUTHOR]
- Published
- 2007
21. Earnings on the Information Technology Roller Coaster: Insight from Matched Employer-Employee Data.
- Author
-
Hotchkiss, Julie L., Pitts, M. Melinda, and Robertson, John C.
- Subjects
- *
INFORMATION technology , *EMPLOYMENT , *ECONOMICS , *WAGES , *MANUFACTURED products - Abstract
This paper uses matched employer-employee data for the state of Georgia to examine workers' earnings experience through the information technology (IT) sector's employment boom of the mid-1990s and its bust in the early 2000s. The results show that even after controlling for individual characteristics before the sector's boom, transitioning out of the IT sector to a non-IT industry generally resulted in a large wage penalty. However, IT service workers who transitioned to a non-IT industry still fared better than those who took a non-IT employment path. For IT manufacturing workers, there is no benefit to having worked in tech, likely because of the nontransferability of manufacturing experience to other industries. [ABSTRACT FROM AUTHOR]
- Published
- 2005
22. Model Confidence Sets for Forecasting Models.
- Author
-
Hansen, Peter Reinhard, Lunde, Asger, and Nason, James M.
- Subjects
- *
ECONOMIC forecasting , *FORECASTING , *PHILLIPS curve , *ECONOMICS , *MATHEMATICAL models of inflation , *ECONOMIC indicators - Abstract
The paper introduces the model confidence set (MCS) and applies it to the selection of forecasting models. An MCS is a set of models that is constructed so that it will contain the "best" forecasting model, given a level of confidence. Thus, an MCS is analogous to a confidence interval for a parameter. The MCS acknowledges the limitations of the data so that uninformative data yield an MCS with many models, whereas informative data yield an MCS with only a few models. We revisit the empirical application in Stock and Watson (1999) and apply the MCS procedure to their set of inflation forecasts. In the first pre-1984 subsample we obtain an MCS that contains only a few models, notably versions of the Solow-Gordon Phillips curve. On the other hand, the second post-1984 subsample contains little information and results in a large MCS. Yet, the random walk forecast is not contained in the MCS for either of the samples. This outcome shows that the random walk forecast is inferior to inflation forecasts based on Phillips curve-like relationships. [ABSTRACT FROM AUTHOR]
- Published
- 2005
23. Testing the Significance of Calendar Effects.
- Author
-
Hansen, Peter Reinhard, Lunde, Asner, and Nason, James M.
- Subjects
- *
ECONOMICS , *SOCIAL sciences , *BUSINESS , *COMMERCE , *ECONOMIC policy - Abstract
This paper studies tests of calendar effects in equity returns. It is necessary to control for all possible calendar effects to avoid spurious results. The authors contribute to the calendar effects literature and its significance with a test for calendar-specific anomalies that conditions on the nuisance of possible calendar effects. Thus, their approach to test for calendar effects produces robust data-mining results. Unfortunately, attempts to control for a large number of possible calendar effects have the downside of diminishing the power of the test, making it more difficult to detect actual anomalies. The authors show that our test achieves good power properties because it exploits the correlation structure of (excess) returns specific to the calendar effect being studied. We implement the test with bootstrap methods and apply it to stock indices from Denmark, France, Germany, Hong Kong, Italy, Japan, Norway, Sweden, the United Kingdom, and the United States. Bootstrap p- values reveal that calendar effects are significant for returns in most of these equity markets, but end-of-the-year effects are predominant. It also appears that, beginning in the late 1980s, calendar effects have diminished except in small-cap stock indices. [ABSTRACT FROM AUTHOR]
- Published
- 2005
24. Identifying the New Keynesian Phillips Curve.
- Author
-
Nason, James M. and Smith, Gregor W.
- Subjects
- *
PHILLIPS curve , *MATHEMATICAL models of the effect of inflation of unemployment , *MATHEMATICAL models of inflation , *ECONOMICS , *MONETARY policy , *ECONOMIC policy - Abstract
Phillips curves are central to discussions of inflation dynamics and monetary policy. New Keynesian Phillips curves describe how past inflation, expected future inflation, and a measure of real marginal cost or an output gap drive the current inflation rate. This paper studies the (potential) weak identification of these curves under generalized methods of moments (GMM) and traces this syndrome to a lack of persistence in either exogenous variables or shocks. The authors employ analytic methods to understand the identification problem in several statistical environments: under strict exogeneity, in a vector autoregression, and in the canonical three-equation, New Keynesian model. Given U.S., U.K., and Canadian data, they revisit the empirical evidence and construct tests and confidence intervals based on exact and pivotal Anderson-Rubin statistics that are robust to weak identification. These tests find little evidence of forward-looking inflation dynamics. [ABSTRACT FROM AUTHOR]
- Published
- 2005
25. Normalization in Econometrics.
- Author
-
Hamilton, James D., Waggoner, Daniel F., and Tao Zha
- Subjects
- *
ECONOMETRICS , *ECONOMIC models , *MATHEMATICAL models of consumption , *FACTORS of production , *DISTRIBUTION (Probability theory) , *ECONOMICS - Abstract
The issue of normalization arises whenever two different value for a vector of unknown parameters imply the identical economic model. A normalization does not just imply for selecting which point, among equivalent ones, to call the maximum likelihood estimator (MLE). It also governs the topography of the point that go into a small-sample confidence intervals that are dispoint, and very misleading characterizations of the true statistical uncertainly. This paper introduces the identification principle as a framework upon which normalization should be imposed, according to which the boundaries of the allowable parameter space should correspond to loci along which the model is locally unidentified. The authors illustrate these issues with example taken from mixture models, structural VARs, and cointegration. [ABSTRACT FROM AUTHOR]
- Published
- 2004
26. Barriers to International Capital Flows: When, Why, How Big, and for Whom?
- Author
-
Espinosa-Vega, Marco A., Smith, Bruce D., and Yip, Chong K.
- Subjects
- *
CAPITAL movements , *ECONOMICS - Abstract
Until recently, the trend in world capital markets has been toward increasing “globalization” Recent events in Latin America and Asia have forced a rethinking of the desirability of unrestricted world capital flows. In this paper we ask whether simple restrictions on capital mobility can succeed in reducing the volatility of funds flows, whether such restrictions are consistent with the long-term development of the countries that might impose them, whether such restrictions are beneficial for poorer countries while harming wealthier countries, and whether harriers to capital movements should he reduced in magnitude as the development process proceeds. We find first that appropriately selected barriers to capital movements can be used by a poorer country to eliminate the short-term volatility of capital flows and other economic volatility as well. Second, we find that these harriers are consistent with increased rather than reduced levels of economic development in both the short and long run. Third, we show that it is empirically plausible that such barriers will be reduced over time as economies develop. Fourth, we show that, in the long run, all countries can benefit from the presence of barriers to capital mobility. And, fifth, we show that barriers to capital mobility can increase the magnitude of net capital flows in a steady state. [ABSTRACT FROM AUTHOR]
- Published
- 2000
27. Introduction to "Models of Monetary Economies II: The Next Generation.".
- Author
-
Wright, Randall
- Subjects
- *
MONETARY theory , *MONETARY policy , *BANKING industry , *ECONOMIC policy , *ECONOMICS - Abstract
This article is a summary of the papers presented at the Models of Monetary Economies II conference, hosted in May 2004 by the Federal Reserve Bank of Minneapolis and the University of Minnesota. It focuses on several themes in the papers, including the microfoundations of monetary theory, optimal monetary policy, and the role of banking, and also overviews how the contributions fit together. Finally, the article comments on monetary theory in general--how it has evolved and where it may be headed. [ABSTRACT FROM AUTHOR]
- Published
- 2005
- Full Text
- View/download PDF
28. Commentary.
- Author
-
Watson, Mark W.
- Subjects
- *
BUSINESS cycles , *UNEMPLOYMENT , *EMPLOYMENT , *ECONOMICS - Abstract
Comments on a paper by James D. Hamilton, published in this same issue which argues that a linear statistical model with homoskedastic errors cannot capture the nineteenth-century notion of a recurring cyclical pattern in key economic aggregates. Questions raised by Hamilton in his paper; Dynamics of the unemployment rate according to Hamilton; Difference in empirical characterizations of the business cycle.
- Published
- 2005
- Full Text
- View/download PDF
29. Preface: Technology, Growth, and the Labor Market.
- Author
-
Ginther, Donna K. and Zavodny, Madeline
- Subjects
- *
TECHNOLOGY , *LABOR market , *ECONOMICS - Abstract
Introduces four papers which appear in this issue of 'Economic Review,' all of which were presented at the Technology Growth, and the Labor Market conference sponsored by the Federal Reserve Bank of Atlanta and the Andrew Young School of Policy Studies at Georgia State University. Summarization of all the speeches, papers and disscussant comments which were presented at the conference.
- Published
- 2002
30. Discussion.
- Author
-
Gray, Wayne
- Subjects
- *
ECONOMICS ,UNITED States economic policy - Abstract
Opinion. Presents the author's views about about Robert Tannenwald's research paper on state regulatory policy and economic development. His analysis regarding Tannewald's theory of regulatory impact, empirical studies of environmental, labor and banking regulation and insights from the pulp and paper industry; Suggestions of the author for Tannewald's future research.
- Published
- 1997
31. Optimal Monetary Policy Under Uncertainty: A Markov Jump-Linear-Quadratic Approach.
- Author
-
Svensson, Lars E. O. and Williams, Noah
- Subjects
- *
MONETARY policy , *ECONOMIC policy , *MARKOV processes , *PHILLIPS curve , *MONETARY theory , *ECONOMICS - Abstract
This paper studies the design of optimal monetary policy under uncertainty using a Markov jumplinear-quadratic (MJLQ) approach. To approximate the uncertainty that policymakers face, the authors use different discrete modes in a Markov chain and take mode-dependent linear-quadratic approximations of the underlying model. This allows the authors to apply a powerful methodology with convenient solution algorithms that they have developed. They apply their methods to analyze the effects of uncertainty and potential gains from experimentation for two sources of uncertainty in the New Keynesian Phillips curve. The examples highlight that learning may have sizable effects on losses and, although it is generally beneficial, it need not always be so. The experimentation component typically has little effect and in some cases it can lead to attenuation of policy. [ABSTRACT FROM AUTHOR]
- Published
- 2008
- Full Text
- View/download PDF
32. Model Fit and Model Selection.
- Author
-
Kocherlakota, Narayana R.
- Subjects
- *
ECONOMIC models , *ECONOMIC policy , *ESTIMATION theory , *BAYES' estimation , *ECONOMIC equilibrium , *ECONOMICS - Abstract
This paper uses an example to show that a model that fits the available data perfectly may provide worse answers to policy questions than an alternative, imperfectly fitting model. The author argues that, in the context of Bayesian estimation, this result can be interpreted as being due to the use of an inappropriate prior over the parameters of shock processes. He urges the use of priors that are obtained from explicit auxiliary information, not from the desire to obtain identification. [ABSTRACT FROM AUTHOR]
- Published
- 2007
- Full Text
- View/download PDF
33. Using Cyclical Regimes of Output Growth to Predict Jobless Recoveries.
- Author
-
Dueker, Michael J.
- Subjects
- *
PRODUCTION (Economic theory) , *EMPLOYMENT , *RECESSIONS , *ECONOMICS , *ECONOMIC development - Abstract
Gaps between output and employment growth are often attributed to transitional phases by which the economy adjusts to shifts in the rate of trend productivity growth. Nevertheless, cyclical factors can also drive a wedge between output and employment growth. This article shows that one measure of cyclical dynamics--the expected output loss associated with a recession--helps predict the gap between output and employment growth in the coming four quarters. This measure of the output loss associated with a recession can take unexpected twists and turns as the recovery unfolds. The empirical results in this paper support the proposition that a weaker-than-expected rebound in the economy can partially mute employment growth for a time relative to output growth. [ABSTRACT FROM AUTHOR]
- Published
- 2006
- Full Text
- View/download PDF
34. Organizational Dynamics Over the Business Cycle: A View on Jobless Recoveries.
- Author
-
Koenders, Kathryn and Rogerson, Richard
- Subjects
- *
EMPLOYMENT , *CORPORATE reorganizations , *RECESSIONS , *BUSINESS cycles , *ECONOMICS - Abstract
This paper proposes a new explanation for the apparent slow growth in employment during the past two recoveries. The authors' explanation emphasizes dynamics within growing organizations and the intertemporal substitution of organizational restructuring. A key implication of the analysis is that recoveries from recessions following long expansions will have slower employment growth. Empirical analysis shows that the recovery that began in 1970 also exhibited slow employment growth, consistent with this prediction of the analysis. [ABSTRACT FROM AUTHOR]
- Published
- 2005
- Full Text
- View/download PDF
35. Commentary.
- Author
-
Alvarez, Fernando
- Subjects
- *
EMPLOYMENT , *ECONOMIC models , *ECONOMIC equilibrium , *ECONOMICS - Abstract
Comments on a paper by Kathryn Koenders and Richard Rogerson which proposes a new explanation for the apparent slow growth in employment during the past two recoveries. Observations on Koenders and Rogerson's model; General equilibrium (GE) version of the model by Koenders and Rogerson; Analysis of the GE model.
- Published
- 2005
- Full Text
- View/download PDF
36. Commentary.
- Author
-
Sims, Christopher A.
- Subjects
- *
BUSINESS cycles , *MACROECONOMICS , *EMPLOYMENT , *ECONOMIC models , *ECONOMICS - Abstract
Comments on a paper by Jordi Galí published in this same issue which revisits a property embedded in most dynamic macroeconomic models: the stationarity of hours worked. Investigation into how much of the business cycle is accounted for by technology shocks; Fundamental problem with identification of vector autoregressions by means of long-run restrictions; Graph showing the response of employment to technology shock.
- Published
- 2005
- Full Text
- View/download PDF
37. Trends in Hours, Balanced Growth, and the Role of Technology in the Business Cycle.
- Author
-
Galí, Jordi
- Subjects
- *
BUSINESS cycles , *MACROECONOMICS , *ECONOMIC models , *ECONOMICS ,GROUP of Seven countries ,DEVELOPED countries - Abstract
This paper revisits a property embedded in most dynamic macroeconomic models: the stationarity of hours worked. First, the author argues that, contrary to what is often believed, there are many reasons why hours could be nonstationary in those models, while preserving the property of balanced growth. Second, the author shows that the postwar evidence for most industrialized economies is clearly at odds with the assumption of stationary hours per capita. Third, he examines the implications of that evidence for the role of technology as a source of economic fluctuations in the G7 countries. [ABSTRACT FROM AUTHOR]
- Published
- 2005
- Full Text
- View/download PDF
38. What's Real About the Business Cycle?
- Author
-
Hamilton, James D.
- Subjects
- *
BUSINESS cycles , *CYCLES , *UNEMPLOYMENT , *EMPLOYMENT , *ECONOMICS - Abstract
This paper argues that a linear statistical model with homoskedastic errors cannot capture the nineteenth-century notion of a recurring cyclical pattern in key economic aggregates. A simple nonlinear alternative is proposed and used to illustrate that the dynamic behavior of unemployment seems to change over the business cycle, with the unemployment rate rising more quickly than it falls. Furthermore, many but not all economic downturns are also accompanied by a dramatic change in the dynamic behavior of short-term interest rates. It is suggested that these nonlinearities are most naturally interpreted as resulting from short-run failures in the employment and credit markets and that understanding these short-run failures is the key to understanding the nature of the business cycle. [ABSTRACT FROM AUTHOR]
- Published
- 2005
- Full Text
- View/download PDF
39. Commentary.
- Author
-
Snyder Jr., James M.
- Subjects
- *
INTERNAL migration , *INTERNAL migration -- Social aspects , *ECONOMICS - Abstract
Presents a commentary on the papers written by Edward Glaser and Matthew Kahn and by Edwin Mills which have a common issue on mobile resources. Positive relationship between population and redistribution; Argument on the long-run policy goal of each city.
- Published
- 1999
40. Commentary.
- Author
-
Mayer, Christopher J.
- Subjects
- *
HOME ownership , *HOUSING policy , *ECONOMICS - Abstract
Presents a commentary on papers written by James Orr and Richard Peach and Joseph Gyourko and Joseph Tracy with focus on issues related to home ownership. Discussion of the findings; Analysis of the results; Policies to encourage home ownership; Conclusion.
- Published
- 1999
41. Discussion.
- Author
-
Hunt, H. Allan
- Subjects
- *
ECONOMICS ,UNITED States economic policy - Abstract
Opinion. Presents the author's views about the research paper of Robert Tannewald regarding the impact of state regulatory policy to economic development. His analysis regarding the empirical evidence of the impact of regulation to economic development.
- Published
- 1997
42. Statements to the Congress.
- Author
-
Stern, Gary H.
- Subjects
- *
ECONOMICS ,UNITED States economy - Abstract
Discusses economic conditions in the Ninth Federal Reserve District and presents views on monetary policy. Gary H. Stern's speech before the Senate Committee on Banking, Housing and Urban Affairs, 1993; Personal income growth; Agriculture's impact; Mining and energy; Excess capacity in paper industry; Forestry; Manufacturing; Employment; Banking industry; Telecommunications; More.
- Published
- 1993
43. "Paradox" Redux.
- Author
-
Clement, Douglas
- Subjects
- *
ECONOMICS , *ECONOMIC models - Abstract
In this article, the author discusses a paper which revisited the paradox of thrift, an idea that was popularized by British economist John Maynard Keynes in the 1930s. The paper "Engineering a Paradox of Thrift Recession," authored by Minneapolis Fed economists Zhen Huo and José-Victor Rios-Rull and published in Minneapolis Fed Staff Report 478 online at minneapolisfed.org, is referenced. The article also discusses the economic model that was examined by two researchers.
- Published
- 2013
44. Uninsured Risk, Stagnation, and Fiscal Policy.
- Author
-
Braun, R. Anton and Tomoyuki Nakajima
- Subjects
- *
RISK , *ECONOMICS , *UNCERTAINTY , *STAGNATION (Economics) , *BUSINESS cycles - Abstract
Japan is in the midst of a protracted spell of depressed economic activity. Japan's economic stagnation has occurred against a background of rising earnings risk. Occupational stability is falling as routine occupations disappear and implicit lifetime employment guarantees are gradually disappearing. At the same time, earnings in some high-skilled occupations have continued to grow. The resulting polarization in earnings has also been accompanied by an increase in wealth inequality. We develop a framework that relates these observations. In our model, an increase in uninsured earnings risk depresses output and increases wealth inequality. We then analyze the efficacy of alternative fiscal measures in terms of their ability to increase economic activity, reduce wealth inequality, and improve welfare. We find that a lower tax rate on capital achieves all of these objectives. [ABSTRACT FROM AUTHOR]
- Published
- 2016
45. How Strong is the Macroeconomic Case for Downward Real Wage Rigidity?
- Author
-
Holden, Steinar and Wulfsberg, Fredrik
- Subjects
- *
MACROECONOMICS , *ECONOMICS , *REAL wages , *WAGES , *UNEMPLOYMENT - Abstract
The article presents a public policy discussion paper on the strength of the macroeconomic case for downward real wage rigidity (DRWR). According to the article, the relative strength of DRWR is measured by the fraction of wage cuts prevented (FWCP) and that the wages are more rigid at more negative growth rates than at constant growth rates. The author suggests further tests on whether or not binding DRWR and additional wage pressures bring about higher unemployment.
- Published
- 2007
46. External Imbalances and Adjustment in the Pacific Basin: Conference Summary.
- Author
-
Glick, Reuven and Spiegel, Mark
- Subjects
- *
PUBLISHED reprints , *ECONOMICS , *BALANCE of payments , *BALANCE of trade , *INTERNATIONAL trade , *PUBLIC debts - Abstract
Presents a reprint of a summary of papers presented at the conference External Imbalances and Adjustment in the Pacific Basin held on September 22-23, 2005, which appeared in the March 10, 2005 issue of "FRBSF Economic Letter." Implications of U.S. current account deficit; U.S. bilateral trade deficit with China; Impact of dollar depreciations on the U.S. net debt position.
- Published
- 2006
47. Structural Change and Monetary Policy.
- Subjects
- *
MONETARY policy , *ECONOMICS - Abstract
Summarizes the papers presented at the conference 'Structural Change and Monetary Policy' sponsored by the Federal reserve Bank of San Francisco and Stanford University on March 3 to 4, 2000. Changes to output fluctuations in the United States; Indicator variables for monetary policy; Resurgence of growth in the late 1990s.
- Published
- 2000
48. Economic Activity and Inflation.
- Subjects
- *
PRICE inflation , *UNEMPLOYMENT , *ECONOMICS - Abstract
Examines the papers on the relationship between inflation and economic activity that were presented at a macroeconomics workshop organized by the Federal Reserve Bank of San Francisco and the Stanford Institute for Economic Policy Research. Relationship between unemployment and inflation; Variations in inflation rate in the United States; Origin of variation in inflation.
- Published
- 2000
49. Do Homeowners Associations Mitigate or Aggravate Negative Spillovers from Neighboring Homeowner Distress?
- Author
-
Ron Cheung, Cunningham, Chris, and Meltzer, Rachel
- Subjects
- *
FORECLOSURE , *JUVENILE delinquency , *HOME prices , *REPOSSESSION , *HOMEOWNERS , *ECONOMICS , *SOCIETIES - Abstract
Experiences reveal that the monitoring costs of the foreclosure crisis may be nontrivial, and smaller governments may have more success at addressing potential negative externalities. One highly localized form of government is a homeowners association (HOA). HOAs could be well-suited for triaging foreclosures, as they may detect delinquencies and looming defaults through direct observation or missed dues. On the other hand, the reliance on dues may leave HOAs particularly vulnerable to members' foreclosure. We examine how property prices respond to homeowner distress and foreclosure within HOA communities in Florida. We combine data sets of HOAs, sales and aggregate loan delinquency, and foreclosures from 2000 through 2008. We find properties in HOAs are relatively less affected by more distressed neighbor homes compared with non-HOA properties, but only when considering less severe delinquency rates. We also find that negative price effects from higher delinquency exposure rates are ameliorated for properties in larger and newer HOAs. [ABSTRACT FROM AUTHOR]
- Published
- 2013
50. Unemployment, Negative Equity, and Strategic Default.
- Author
-
Gerardi, Kristopher, Herkenhoff, Kyle F., Ohanian, Lee E., and Willen, Paul S.
- Subjects
- *
UNEMPLOYMENT statistics , *EQUITY (Law) , *WEALTH management services , *EMPLOYMENT , *FINANCIAL services industry , *ILLIQUID assets , *ECONOMICS - Abstract
Using new household-level data, we quantitatively assess the roles that job loss, negative equity, and wealth (including unsecured debt, liquid assets, and illiquid assets) play in default decisions. In sharp contrast to prior studies that proxy for individual unemployment status using regional unemployment rates, we find that individual unemployment is the strongest predictor of default. We find that individual unemployment increases the probability of default by 5-13 percentage points, ceteris paribus, compared with the sample average default rate of 3.9 percent. We also find that only 13.9 percent of defaulters have both negative equity and enough liquid or illiquid assets to make one month's mortgage payment. This finding suggests that "ruthless" or "strategic" default during the 2007-09 recession was relatively rare and that policies designed to promote employment, such as payroll tax cuts, are most likely to stem defaults in the long run rather than policies that temporarily modify mortgages. [ABSTRACT FROM AUTHOR]
- Published
- 2013
Discovery Service for Jio Institute Digital Library
For full access to our library's resources, please sign in.