-
作者：Francis, N; Ramey, VA
作者单位：University of California System; University of California San Diego; University of North Carolina; University of North Carolina Chapel Hill
摘要：This paper re-examines recent empirical evidence that positive technology shocks lead to short-run declines in hours. Building on Gali's [1999. Technology, employment, and the business cycle: do technology shocks explain aggregate fluctuations. American Economic Review 89, 249-271] work, which uses long-run restrictions to identify technology shocks, we analyze whether the identified shocks can be plausibly interpreted as technology shocks. We first examine the validity of the identification a...
-
作者：Yang, SCS
摘要：Studies of tax effects make the conventional information assumption that changes in period-t taxes become known at t. Legislative lags, however, imply that news arrives before tax changes take place. Under policy foreknowledge, the conventional information structure is therefore misspecified. Simulations of a standard neoclassical growth model suggest that foresight of only one quarter can distort substantially the estimates of tax effects obtained under the no-foresight assumption. Also, it i...
-
作者：Bhattacharya, J; Haslag, J; Russell, S
作者单位：University of Missouri System; University of Missouri Columbia; Purdue University System; Purdue University; Purdue University in Indianapolis; Iowa State University
摘要：In models of money with an infinitely lived representative agent (ILRA models), the optimal monetary policy is almost always the Friedman rule. In overlapping generations (OG) models, by contrast, the Friedman rule may not be optimal. In this paper, we use this difference in monetary policy prescriptions to help us identify and study the key difference between these two models as models of money. We study the welfare properties of monetary policy in a simple OG model under two very different m...
-
作者：Bannier, CE
作者单位：Goethe University Frankfurt; Universitat Kassel
摘要：Market participants often suspect that large traders have a disproportionate effect on financial markets, increasing the aggressiveness of market responses. Prior studies have shown that the impact of a large trader on a currency crisis depends positively on his size and informational position. By contrast, this article highlights the role that market sentiment has on the impact of a large trader. If the market believes that fundamentals are weak, then the probability of a crisis depends posit...
-
作者：Meyer, DJ; Meyer, J
作者单位：Michigan State University; Western Michigan University
摘要：The relationship between the relative risk aversion measure for the utility function for consumption and that for the value function for wealth is a derived relationship whose properties depend on how consumption and wealth are defined and measured. This fact together with information concerning estimates for these two relative risk aversion measures is used to give another perspective on the equity premium puzzle, and to explain why it is that the habit formation utility function is effective...
-
作者：Ennis, HM; Keister, T
作者单位：Federal Reserve System - USA; Federal Reserve Bank - Richmond; Instituto Tecnologico Autonomo de Mexico
摘要：We study optimal fiscal policy in an economy where (i) search frictions create a coordination problem and generate multiple, Pareto-ranked equilibria and (ii) the government finances the provision of a public good by taxing market activity. The government must choose the tax rate before it knows which equilibrium will obtain, and therefore an important part of the problem is determining how the policy will affect the equilibrium selection process. We show that when the equilibrium selection ru...
-
作者：Huang, KXD; Liu, Z
作者单位：Emory University; Federal Reserve System - USA; Federal Reserve Bank - Philadelphia
摘要：In an economy with nominal rigidities in both an intermediate good sector and a finished good sector, and thus with a natural distinction between CPI and PPI inflation rates, a benevolent central bank faces a tradeoff between stabilizing the two measures of inflation, a final output gap and, unique to our model, a real marginal cost gap in the intermediate sector, so that optimal monetary policy is second-best. We discuss how to implement the optimal policy with minimal information requirement...
-
作者：Kim, J; Henderson, DW
作者单位：Federal Reserve System - USA; Federal Reserve System Board of Governors
摘要：We compare optimal and simple interest-rate rules. Our model features optimizing agents, monopolistic competition in both product and labor markets, and one-period nominal contracts (for wages alone or for both wages and prices) signed before shocks are known. Exact solutions ensure that we obtain correct welfare rankings. Optimal rules maximize the unconditional expected utility of the representative agent with commitment subject to the information set of the policymaker. Even with monopolist...
-
作者：Bover, O; Watson, N
作者单位：Banco de Espana
摘要：We estimate elasticities of scale in the demand for money by firms using firm level panel data from Spain, the UK, and the US. This elasticity is one for Spain and the UK but smaller for the US. We find that the errors in the money demand equations contain two terms that are correlated with sales. Firstly, a permanent firm effect that captures differences in technological sophistication. Secondly, a measurement error in sales, which becomes relevant when relying on changes in sales to account ...
-
作者：Wen, Y
作者单位：Cornell University
摘要：Careful examination of aggregate data from the U.S. and other OECD countries reveals that production and inventory behavior exhibit paradoxical features: (1) Inventory investment is strongly countercyclical at very high frequencies (e.g., 2-3 quarters per cycle); it is procyclical only at relatively low-cyclical frequencies such as the business-cycle frequencies (e.g., 8-40 quarters per cycle). (2) Production is less volatile than sales around the high frequencies; it is more volatile than sal...
