-
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...
-
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...
-
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...
-
作者：Arseneau, David M.; Chugh, Sanjay K.
作者单位：University System of Maryland; University of Maryland College Park; Federal Reserve System - USA; Federal Reserve System Board of Governors
摘要：Costly nominal wage adjustment has received renewed attention in the design of optimal policy. in this paper, we embed costly nominal wage adjustment into the modern theory Of frictional labor markets to Study optimal fiscal and monetary policy. The main result is that the optimal rate of price inflation is quite volatile despite the presence of nominal wage rigidities. This finding contrasts with results obtained in standard sticky-wage models, which employ neoclassical labor markets at their...
-
作者：Williamson, Stephen D.
作者单位：Washington University (WUSTL); Federal Reserve System - USA; Federal Reserve Bank - St. Louis
摘要：A segmented markets model of monetary policy is constructed, in which a novel feature is goods market segmentation, and its relationship to conventional asset market segmentation. The implications of the model for the response of prices, interest rates, consumption, labor supply, and output to monetary policy are determined. As well, optimal monetary policy is studied, as are the costs of inflation. The model features persistent nonneutralities of money, relative price effects of increases in ...
-
作者：McKay, Alisdair; Reis, Ricardo
作者单位：Princeton University; Princeton University
摘要：Early studies of business cycles argued that contractions in economic activity were briefer (shorter) and more violent (rapid) than expansions. This paper systematically investigates this claim and in the process discovers a robust new business cycle fact: contractions in employment are briefer and more violent than expansions but we cannot reject the null of equal brevity and violence for expansions and contractions in output. The difference arises because employment typically lags output aro...
-
作者：Ljungqvist, Lars; Sargent, Thomas J.
作者单位：Stockholm School of Economics; New York University
摘要：An incomplete-market life-cycle model with indivisible labor makes career lengths and human capital accumulation respond to labor tax rates and government supplied non-employment benefits. We compare aggregate and individual outcomes in this individualistic incomplete-market model with those in a comparable collectivist representative-family model with employment lotteries and complete-insurance markets. The incomplete- and complete-market structures assign leisure to different types of indivi...
-
作者：Pavan, Marina
作者单位：University College Dublin
摘要：There exist substantial differences in the generosity Of bankruptcy protection across U.S. states. This paper exploits cross-state variation in exemption levels to assess the dual role Of durable goods as informal collateral for unsecured debt and self insurance against had shocks to earnings. The generosity of bankruptcy protection is found to change both the incentives and the ability of households to accumulate durable wealth. The gains from a high level of insurance are reduced by the effe...
-
作者：Bergin, Paul R.; Corsetti, Giancarlo
作者单位：University of California System; University of California Davis; European University Institute; Roma Tre University
摘要：The creation of new firms, referred to as the extensive margin, is a significant but overlooked dimension of monetary policy. A monetary VAR documents that monetary policy has significant effects on firm creation. An analytically tractable model combining sticky prices and firm entry shows that entry alters the transmission of monetary policy innovations, acting much like a type of investment in more standard models. Monetary policy rules that offset the uncertainty of productivity shocks can ...
-
作者：Rotemberg, Julio J.
作者单位：Harvard University
摘要：A monopsony model with a symmetric equilibrium is developed where posting higher wages reduces employee departures. This monopsony implies that wage changes have small effects on profits so that employer altruism affects wages as well. Even selfish firms act altruistically if workers punish firms that fail to do so. If the marginal utility of income falls sharply with income, the model can explain modest responses of wages to shifts in labor demand. If there are fluctuations in the altruism re...
