-
作者：Brown, Craig O.
作者单位：Purdue University System; Purdue University
摘要：Economies governed by former economics students grow faster than economies governed by leaders with other education backgrounds; a result which is most evident for presidents. Faster growth (average growth) occurs during an economic leader's first year (entire tenure), primarily through investment. When focusing on close elections which quasi randomize economic leadership, I find a large effect that is robust controlling for a leader's advanced education. Investors seem to hasten their activit...
-
作者：Xie, Jin
作者单位：Chinese University of Hong Kong
摘要：Firms adjust output prices to cost decreases with a delay relative to cost increases. I document firms' operating income becomes less persistent when their input costs decrease than when their costs increase. The stocks of firms slowly cutting output prices due to asymmetric output-price rigidities also experience high stock return volatility, and their CEOs more frequently manage expectations of financial analysts. I show these results are consistent with a New Keynesian model with trend infl...
-
作者：Magill, Michael; Quinzii, Martine; Rochet, Jean-Charles
作者单位：University of Southern California; University of California System; University of California Davis; University of Geneva; Universite de Toulouse; Universite Toulouse 1 Capitole; Toulouse School of Economics
摘要：A simple equilibrium model is presented which permits the joint study of optimal Central Bank prudential, monetary and balance sheet policies in the pre and post 2008 Crisis periods. It explains the new policies-the purchase of risky securities (QE), payment of interest on reserves (IR) and use of reverse repo (RRP)-as the response to the lack of safe assets in the economy, and shows why these policies were not needed to achieve optimality before 2008, but were needed for the 2008 Crisis and t...
-
作者：Groll, Dominik; Monacelli, Tommaso
作者单位：Leibniz Association; Institut fur Weltwirtschaft an der Universitat Kiel (IFW); Bocconi University
摘要：If the monetary authority lacks commitment, a monetary union can dominate flexible exchange rates. With forward-looking staggered pricing, inertia in the terms of trade- induced by a fixed exchange rate-is a benefit under discretion, since it acts like a commitment device. By trading off flexibility in the adjustment of the terms of trade, the monetary authority improves on its ability to manage private sector's expectations. The higher the incidence of asymmetric inefficient shocks, and/or th...
-
作者：Inoue, Atsushi; Kuo, Chun-Hung; Rossi, Barbara
作者单位：Vanderbilt University; National Tsing Hua University; Pompeu Fabra University; Barcelona School of Economics; ICREA; Pompeu Fabra University; Centre de Recerca en Economia Internacional (CREI); ICREA
摘要：Conventional macroeconomic models fail to predict to the Great Recession. Is it because they are misspecified? We propose an empirical method for detecting and identifying misspecification in structural economic models. Our approach formalizes the common practice of adding shocks in the model, and identifies potential misspecification via forecast error variance decomposition and marginal likelihood analyses. The simulation results based on a small-scale DSGE model demonstrate that our method ...
-
作者：Pasten, Ernesto; Schoenle, Raphael; Weber, Michael
作者单位：Central Bank of Chile; Universite de Toulouse; Universite Toulouse 1 Capitole; Toulouse School of Economics; Federal Reserve System - USA; Federal Reserve Bank - Cleveland; Brandeis University; Center for Economic & Policy Research (CEPR); University of Chicago; National Bureau of Economic Research
摘要：Realistic heterogeneity in price rigidity interacts with heterogeneity in sectoral size and input-output linkages in the transmission of monetary policy shocks. Quantitatively, heterogeneity in price stickiness is the central driver for real effects. Input-output linkages and consumption shares alter the identity of the most important sectors to the transmission. Reducing the number of sectors decreases monetary non-neutrality with a similar impact response of inflation. Hence, the initial res...
-
作者：Ozhan, Galip Kemal
作者单位：University of St Andrews
摘要：During the first decade of the euro, southern countries experienced a boom-bust cycle in bank lending, non-tradable sector growth, and capital inflows. I develop a quantitative, open economy model of banking that is consistent with the banks' behavior in credit allocation and foreign borrowing observed in Spanish data. I illustrate how movements in the frictions of cross-border deposits generate an endogenous asymmetric allocation of bank credit toward non-traded sectors, while producing a per...
-
作者：Chien, YiLi; Lustig, Hanno; Naknoi, Kanda
作者单位：Federal Reserve System - USA; Federal Reserve Bank - St. Louis; Stanford University; University of Connecticut
摘要：Empirical moments of asset prices and exchange rates imply that pricing kernels are almost perfectly correlated across countries. Otherwise, observed real exchange rates would be too smooth for high Sharpe ratios. However, the cross-country correlation among macro fundamentals is weak. We reconcile these facts in a two-country stochastic growth model with heterogeneous households and a home bias in consumption. In our model, only a small fraction of households trade domestic and foreign equiti...
-
作者：Levy, Daniel; Snir, Avichai; Gotler, Alex; Chen, Haipeng (Allan)
作者单位：Bar Ilan University; Emory University; Wilfrid Laurier University; Netanya Academic College; Open University Israel; University of Kentucky
摘要：We document an asymmetry in the rigidity of 9-ending prices relative to non-9-ending prices. Consumers have difficulty noticing higher prices if they are 9-ending, or noticing price-increases if the new prices are 9-ending, because 9-endings are used as a signal for low prices. Price setters respond strategically to the consumer-heuristic by setting 9-ending prices more often after price-increases than after price-decreases. 9-ending prices, therefore, remain 9-ending more often after price-in...
-
作者：Benati, Luca
作者单位：University of Bern
摘要：M1 velocity is, approximately, the permanent component of the short-term rate. This implies that agents-in deciding how much wealth to allocate to non interest-bearing M1, as opposed to interest-bearing assets-almost uniquely react to permanent shocks to the opportunity cost, essentially ignoring transitory shocks. This suggests that money-demand models must be modified to allow for such distinct reaction to permanent and transitory variation in the opportunity cost of holding M1. Under moneta...
