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作者：Cho, Daeha; Kim, Jung Hyun; Kim, Kwang Hwan; Kim, Suk Joon
作者单位：Hanyang University; Yonsei University; New York University
摘要：We study the optimal inflation target in an open economy with a zero lower bound (ZLB) on nominal interest rates calibrated to the Euro area. When uncovered interest rate parity (UIP) holds, the optimal inflation target is smaller than in a closed economy. The key to this result is that real interest rates at the ZLB increase less as trade openness increases. This less pronounced increase in real interest rates in an open economy mitigates the contraction in aggregate demand, thus reducing the...
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作者：Cloyne, James; Kurt, Ezgi; Surico, Paolo
作者单位：University of California System; University of California Davis; Centre for Economic Policy Research - UK; National Bureau of Economic Research; Bentley University; University of London; London Business School
摘要：Goods producers increase their capital expenditure and employment in response to a cut in marginal corporate income tax rates or an increase in investment tax credits. In contrast, companies in the service sector mostly use any tax windfall to increase dividend payouts. We base our conclusions on a novel measure of U.S. firm-specific tax shocks that combines changes in statutory tax rates faced by each firm with narrative identified legislated U.S. federal tax changes between 1950 and 2006.
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作者：Arden, Lucas; Hauptmeier, Sebastian; Kamps, Christophe
作者单位：Deutsche Bundesbank; European Central Bank
摘要：We examine how fiscal policy can support monetary policy when nominal interest rates face an occasionally binding lower bound constraint. Within the conventional framework of active monetary policy and passive fiscal policy, the optimized fiscal rule features a strong response to inflation deviations from the central bank's target. The inflation-stabilizing fiscal rule significantly reduces the deflationary bias and welfare costs associated with the lower bound constraint while maintaining deb...
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作者：Kim, Duhyeong
作者单位：University System of Ohio; Kent State University; Kent State University Kent; Kent State University Salem
摘要：How much can central banks reduce nominal interest rates? Can the lower bound be controlled by monetary policy? If so, should central banks reduce it to implement negative interest rates? I construct a model with multiple means of payment where the costs of holding paper currency effectively reduce its rate of return, creating a negative effective lower bound on interest rates. I find that central banks can reduce this lower bound with a non-par exchange rate between currency and bank reserves...
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作者：Krueger, Dirk; Ludwig, Alexander; Popova, Irina Irina
作者单位：University of Pennsylvania; ; ; Tilburg University; European University Institute; Goethe University Frankfurt; University of Bonn
摘要：We evaluate the aggregate, distributional and welfare consequences of alternative government education policies to encourage college completion, such as making college free and improving funding for public schooling. To do so, we construct a general equilibrium overlapping generations model with intergenerational linkages, a higher education choice as well as a multi-stage human capital production process during childhood and adolescence with parental and government schooling investments. The ...
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作者：Townsend, Robert M.
作者单位：Massachusetts Institute of Technology (MIT)
摘要：This essay honors the contributions of Robert E. Lucas, Jr., to the most important macro problems where informational frictions are relevant today. The first step focuses on two of Lucas' papers where information frictions play somewhat different roles, zeroing in on the key elements: money, islands, and imperfect information. Each paper is then linked to associated branches of the literature. The second step argues that new technologies have now emerged which make those key elements all the m...
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作者：Kukk, Merike; Toczynski, Jan; Basten, Christoph
作者单位：Tallinn University of Technology; Bank of Estonia (Eesti Pank); Aalto University; University of London; Queen Mary University London; European Central Bank
摘要：Using a unique set of bank account-level data from a period of volatile inflation in a small open economy in 2005-11 and interactive fixed effect estimation, we find that individual consumption spending responds to personal inflation exposure beyond the headline rate. Households are exposed to different inflation because they have different expenditure baskets. For each percentage point of higher personal inflation rate, they increase their spending by 1.4%. These responses are consistent with...
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作者：Cavenaile, Laurent; Celik, Murat Alp; Roldan-Blanco, Pau; Tian, Xu
作者单位：University of Toronto; University Toronto Scarborough; University of Toronto; Autonomous University of Barcelona; Barcelona School of Economics; University System of Georgia; University of Georgia
摘要：While firms use both innovation and advertising to boost profits, markups, and market shares, their broader social implications vary substantially. We study their interaction and analyze their implications for competition, industry dynamics, growth, and welfare. We develop an oligopolistic general-equilibrium growth model with firm heterogeneity. Market structure is endogenous, and firms' production, innovation, and advertising decisions interact strategically. We find advertising reduces stat...
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作者：Di Pace, Federico; Mangiante, Giacomo; Masolo, Riccardo M.
作者单位：Bank of England; European Central Bank; Bank of Italy; Catholic University of the Sacred Heart; Ecole Nationale de la Statistique et de l'Analyse de l'Information (ENSAI)
摘要：This paper investigates whether UK firms' price growth expectations respond to the Bank of England (BoE) monetary policy announcements and explores the underlying mechanism. Using microdata from the UK Decision Maker Panel survey, we isolate the exogenous component of the monetary policy decisions by comparing firms' responses filed before and after BoE announcements. Guided by a model of dispersed information, our analysis suggests that firms respond to monetary policy announcements but are, ...
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作者：Mandelman, Federico; Mehra, Mishita; Shen, Hewei
作者单位：Federal Reserve System - USA; Federal Reserve Bank - Atlanta; University of Richmond; University of Oklahoma System; University of Oklahoma - Norman
摘要：This paper examines the impact of immigration policy frictions on technology-intensive firms by age cohort. The firm-level empirical evidence shows that H-1B policy restrictions on skilled immigrants directly affect the survival of young firms in technology-intensive sectors. We develop a novel general equilibrium model with firm entry and exit that mimics the policy frictions in the H-1B program. The model matches the age distribution of firms in hightechnology sectors and shows that immigrat...
