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Title
Author(s)
Year
David Lee
2012
This paper provides a theoretical analysis of optimal minimum wage policy in a perfectly competitive labor market and obtains two key results. First, we show that a binding minimum wage – while leading to unemployment – is nevertheless desirable if the ...
Atul Kohli
2012
When compared to Latin America, Asian economies since 1980 have grown faster and have done so with relatively modest inequalities. Why? A comparison of Asia and Latin America underlines the superiority of the nationalist capitalist model of development, ...
Mark Watson
2012
This paper provides a simple shrinkage representation that describes the operational characteristics of various forecasting methods designed for a large number of orthogonal predictors (such as principal components). These methods include pretest methods, ...
Alan Blinder
2012
To me, close cooperation between the central bank and the Treasury in a crisis is both inevitable and desirable. And in this particular crisis, it was both essential and salutary. The trick is how and when the Treasury and the central bank disengage after ...
2012
Liquidity and deflationary spirals self-generate endogenous risk and redistribute wealth. Monetary policy can mitigate these effects and help rebalance wealth after an adverse shock, thereby reducing endogenous risk, stabilizing the economy, and ...
Oleg Itskhoki
2012
We document the behavior of trade prices during the Great Trade Collapse of 2008-09 using transaction-level data from the U.S. Bureau of Labor Statistics. First, we find that differentiated manufactures exhibited marked stability in their trade prices ...
Paul Krugman
2012
In this article we present a simple new Keynesian–style model of debt-driven slumps—that is, situations in which an overhang of debt on the part of some agents, who are forced into rapid deleveraging, is depressing aggregate demand. Making some agents ...
2012
The aim of this paper is to conceptualize and design a risk topography that outlines a data acquisition and dissemination process that informs policymakers, researchers and market participants about systemic risk. Our approach emphasizes that systemic ...
Stephen Redding
2012
We examine urbanization using new data that allow us to track the evolution of population in rural and urban areas in the United States from 1880 to 2000. We find a positive correlation between initial population density and subsequent population growth ...
Paul Krugman
2012
How bad have things gotten? How did we get stuck in what now can only be called a depression? And above all, how do we free ourselves? Krugman pursues these questions with his characteristic lucidity and insight. He has a powerful message for anyone who ...
Grigore Pop-Eleches
2012
This article lays out a methodology for studying the nature of communist legacies and their impact on current political behavior and attitudes. It identifies four possible linkages between the communist past and the present: early socialization, socio ...
Mark Watson
2012
Brookings This paper examines the macroeconomic dynamics of the 2007–09 recession in the United States and the subsequent slow recovery. Using a dynamic factor model with 200 variables, we reach three main conclusions. First, although many of the events ...
Harold James
2012
We discuss three well known plans that were offered in the twentieth century to provide an artificial replacement for gold and key currencies as international reserves: Keynes’ Bancor, the SDR and the Ecu(predecessor to the euro).The latter two of these ...
Atif Mian
2012
A drop in aggregate demand driven by shocks to household balance sheets is responsible for a large fraction of the decline in U.S. employment from 2007 to 2009. The aggregate demand channel for unemployment predicts that employment losses in the non ...
Atif Mian
2012
Debtors bear the brunt of a decline in asset prices associated with financial crises and policies aimed at partial debt relief may be warranted to boost growth in the midst of crises. Drawing on the US experience during the Great Recession of 2008-09 and ...
Brandice Canes-Wrone
2012
Studies of OECD countries have generally failed to detect real economic expansions in the pre-election period, casting doubt on the existence of opportunistic political business cycles. We develop a theory that predicts a substantial portion of the ...
2012
This paper documents that banks with higher non-interest income (noncore activities like investment banking, venture capital and trading activities) have higher contribution to systemic risk than traditional banking (deposit taking and lending). After ...
Sir Angus Deaton
2012
I use daily data on self-reported well-being (SWB) to examine how the Great Recession affected the emotional and evaluative lives of the population. In the fall of 2008 and lasting into the spring of 2009, at the bottom of the stock market, Americans ...
Benjamin Moll
2012
We take an off-the-shelf model with financial frictions and heterogeneity, and study the mapping from a credit crunch, modeled as a shock to collateral constraints, to simple aggregate wedges. We study three variants of this model that only differ in the ...
Richard Rogerson
2012
We build a general equilibrium model that features uninsurable idiosyncratic shocks, search frictions and an operative labor supply choice along the extensive margin. The model is calibrated to match the average levels of gross flows across the three ...

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