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作者：Blalock, Garrick; Gertler, Paul J.; Levine, David I.
作者单位：Cornell University; University of California System; University of California Berkeley; National Bureau of Economic Research
摘要：We investigate whether capital market imperfections constrain investment during an emerging market financial crisis. Both large currency devaluations and banking sector failures characterize recent crises. Although a currency devaluation should increase exporters' competitiveness and investment, a failing banking system may limit credit to these firms. Foreign-owned firms, which may have greater access to overseas financing but otherwise face the same investment prospects, provide an ideal con...
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作者：Klee, Elizabeth
作者单位：Federal Reserve System - USA
摘要：Empirical evidence based on grocery store transaction data shows that consumer payment behavior at the point of sale is important for understanding models of money demand. There are statistically significant effects of transaction costs, opportunity costs, and product characteristics on the choice of payment instrument, which then, in turn, affect money demand. These results emphasize the overlap between the work of empirical researchers in payment choice and theoretical modelers of monetary e...
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作者：Broner, Fernando A.
作者单位：Centre de Recerca en Economia Internacional (CREI); Pompeu Fabra University
摘要：The first generation models of currency crises have often been criticized because they predict that, in the absence of very large triggering shocks, currency attacks should be predictable and lead to small devaluations. This paper shows that these features of first generation models are not robust to the inclusion of private information. In particular, this paper analyzes a generalization of the Krugman-Flood-Garber (KFG) model, which relaxes the assumption that all consumers are perfectly inf...
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作者：Crucini, Mario J.; Shintani, Mototsugu
作者单位：Vanderbilt University; Bank of Japan
摘要：Using an extensive micro-price panel, we find a positive cross-sectional relationship between LOP persistence and the distribution margin, which we measure using sectoral U.S. data, as suggested by the classical dichotomy. The median level of persistence (across goods) is low, and there is no evidence of a border effect: the half-life of a deviation is about 19 months across OECD cities and just I month lower across cities in the U.S. Aggregating our micro-data using a variety of weighting met...
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作者：Fitzgerald, Doireann
作者单位：Stanford University
摘要：If countries specialize in imperfectly substitutable goods, trade costs increase the share of expenditure devoted to domestic output, reducing the exposure of consumer price inflation to exchange rate changes. I present a multi-country flexible-price model where expenditure shares are inversely related to trade costs through a gravity equation. In this setting, consumer price inflation can be approximated as an expenditure-share-weighted average of the contributions to inflation from all count...
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作者：Naknoi, Kanda
作者单位：Purdue University System; Purdue University
摘要：The real exchange rate is driven by fluctuations of the relative price of traded goods and the relative price of nontraded to traded goods. This study explains the variance decomposition of the real exchange rate using a stochastic dynamic general equilibrium model of comparative advantage with money. Given interest rate shocks, exchange rate stability reduces the covariance between the two relative prices and raises the contribution of the relative price of nontraded to traded goods. Producti...
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作者：Boldrin, Michele; Levine, David K.
作者单位：Washington University (WUSTL)
摘要：Based partially on the belief that innovation is not possible under perfect competition, a huge number of papers have been written about the nature of innovation under monopoly or oligopoly. In fact, competitive rents can and do sustain innovation in the complete absence of monopoly power. However, little is known about the source and significance of these rents, or about the way in which innovative activity takes place under conditions of competition. We begin to remedy this imbalance by exam...
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作者：Heathcote, Jonathan; Storesletten, Kjetil; Violante, Giovanni L.
作者单位：University of Oslo; Federal Reserve System - USA; Federal Reserve Bank - Minneapolis; Georgetown University; New York University; National Bureau of Economic Research
摘要：Using a model with constant relative risk-aversion preferences, endogenous labor supply and partial insurance against idiosyncratic wage risk, this paper provides an analytical characterization of three welfare effects: (a) the welfare effect of a rise in wage dispersion, (b) the welfare gain from completing markets, and (c) the welfare effect from eliminating risk. The analysis reveals an important trade-off for these welfare calculations. On the one hand, higher wage uncertainty increases th...
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作者：Martin, Antoine; McAndrews, James
作者单位：Federal Reserve System - USA; Federal Reserve Bank - New York
摘要：This paper studies the incentives of participants in a real-time gross settlement system with and without the addition of a liquidity-saving mechanism (LSM). Participants in the model face a liquidity shock and different costs for delaying payments. They trade off the cost of delaying a payment against the cost of borrowing liquidity from the central bank. The main contribution of the paper is to show that the design of an LSM has important implications for welfare. In particular, parameters d...
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作者：Chakraborty, Avik; Evans, George W.
作者单位：University of Oregon; University of Tennessee System; University of Tennessee Knoxville
摘要：Under rational expectations and risk neutrality the linear projection of exchange-rate change on the forward premium has a unit coefficient. However, empirical estimates of this coefficient are significantly less than one and often negative. We show that replacing rational expectations by discounted least-squares (or perpetual) learning generates a negative bias that becomes strongest when the fundamentals are strongly persistent, i.e. close to a random walk. Perpetual learning can explain the...
