Federal Reserve Bank of Minneapolis

Displaying 1-12 of 12 results

  • White Papers // Apr 2011

    Do Newspapers Matter? Short-Run And Long-Run Evidence From The Closure Of The Cincinnati Post

    The Cincinnati Post published its last edition on New Year's Eve 2007, leaving the Cincinnati Enquirer as the only daily newspaper in the market. The next year, fewer candidates ran for municipal office in the Kentucky suburbs most reliant on the Post, incumbents became more likely to win reelection, and...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Jan 2011

    Transition To FDI Openness: Reconciling Theory And Evidence

    Empirical studies quantifying the economic effects of increased Foreign Direct Investment (FDI) have not provided conclusive evidence that they are positive, as theory predicts. This paper shows that the lack of empirical evidence is consistent with theory if countries are in transition to FDI openness. Anticipated welfare gains lead to...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Dec 2010

    Negative Equity Does Not Reduce Homeowners Mobility

    Some commentators have argued that the housing crisis may harm labor markets because homeowners who owe more than their homes are worth are less likely to move to places that have productive job opportunities. The author shows that, in the available data, negative equity does not make homeowners less mobile....

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Sep 2010

    Sizing Up Job Creation: Are Small Businesses Truly The Engine Of Job Growth? It Depends On How You Look At It

    As the nation struggles to recover from the Great Recession, many policymakers view small businesses as the best hope for increased hiring and renewed prosperity. Again and again, in speeches and in media interviews, public officials have declared that small businesses are the major generators of new jobs, more so...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Mar 2010

    Moving Back Home: Insurance Against Labor Market Risk

    This paper uses an estimated structural model to argue that the option to move in and out of the parental home is an important insurance channel against labor market risk for youths who do not attend college. Using data from the NLSY97, the author constructs a new monthly panel of...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Nov 2009

    Transition To FDI Openness

    Empirical studies quantifying the benefits of increased Foreign Direct Investment (FDI) have been unable to provide conclusive evidence of a positive impact on the host country's economic performance. The author shows that the lack of robust evidence is not inconsistent with theory, even if the gains to FDI openness are...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Oct 2009

    Prizes And Patents: Using Market Signals To Provide Incentives For Innovations

    Innovative activities have public good characteristics in the sense that the cost of producing, say, the first unit of a new good is high compared to the cost of producing subsequent units. Moreover, knowledge of how to produce subsequent units is often widely known once the innovation has occurred and...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Feb 2009

    From Great Depression To Great Credit Crisis: Similarities, Differences And Lessons

    If, as it seems, the 2008 global recession is over and it has not been as severe and as prolonged as the great depression who or what should we thank? Has this happened because we have been just lucky this time or because now we make better and more aggressive...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Oct 2008

    Technical Notes On Facts And Myths About The Financial Crisis Of 2008

    This paper is intended to supplement Chari, Christiano, and Kehoe (2008) by providing additional details of where the data are obtained, how the series are constructed where appropriate, and technical caveats of several points made in the paper. First, the authors describe general data sources used. Then, they address common...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Oct 2008

    Time Inconsistency And Free-riding In A Monetary Union

    In monetary unions, a time inconsistency problem in monetary policy leads to a novel type of free-rider problem in the setting of non-monetary policies. The free-rider problem leads union members to pursue lax non-monetary policies that induce the monetary authority to generate high inflation. Free-riding can be mitigated by imposing...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Oct 2008

    Facts And Myths About The Financial Crisis Of 2008

    The United States is indisputably undergoing a financial crisis and is perhaps headed for a deep recession. Here the authors examine three claims about the way the financial crisis is affecting the economy as a whole and argue that all three claims are myths. They also present three underappreciated facts...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Aug 2007

    Investment-Specific Technological Change, Skill Accumulation, And Wage Inequality

    Wage inequality between education groups in the United States has increased substantially since the early 1980s. The relative number of college-educated workers has also increased dramatically in the postwar period. This paper presents a unified framework where the dynamics of both skill accumulation and wage inequality arise as an equilibrium...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Sep 2010

    Sizing Up Job Creation: Are Small Businesses Truly The Engine Of Job Growth? It Depends On How You Look At It

    As the nation struggles to recover from the Great Recession, many policymakers view small businesses as the best hope for increased hiring and renewed prosperity. Again and again, in speeches and in media interviews, public officials have declared that small businesses are the major generators of new jobs, more so...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Dec 2010

    Negative Equity Does Not Reduce Homeowners Mobility

    Some commentators have argued that the housing crisis may harm labor markets because homeowners who owe more than their homes are worth are less likely to move to places that have productive job opportunities. The author shows that, in the available data, negative equity does not make homeowners less mobile....

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Mar 2010

    Moving Back Home: Insurance Against Labor Market Risk

    This paper uses an estimated structural model to argue that the option to move in and out of the parental home is an important insurance channel against labor market risk for youths who do not attend college. Using data from the NLSY97, the author constructs a new monthly panel of...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Nov 2009

    Transition To FDI Openness

    Empirical studies quantifying the benefits of increased Foreign Direct Investment (FDI) have been unable to provide conclusive evidence of a positive impact on the host country's economic performance. The author shows that the lack of robust evidence is not inconsistent with theory, even if the gains to FDI openness are...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Oct 2008

    Technical Notes On Facts And Myths About The Financial Crisis Of 2008

    This paper is intended to supplement Chari, Christiano, and Kehoe (2008) by providing additional details of where the data are obtained, how the series are constructed where appropriate, and technical caveats of several points made in the paper. First, the authors describe general data sources used. Then, they address common...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Oct 2008

    Time Inconsistency And Free-riding In A Monetary Union

    In monetary unions, a time inconsistency problem in monetary policy leads to a novel type of free-rider problem in the setting of non-monetary policies. The free-rider problem leads union members to pursue lax non-monetary policies that induce the monetary authority to generate high inflation. Free-riding can be mitigated by imposing...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Oct 2009

    Prizes And Patents: Using Market Signals To Provide Incentives For Innovations

    Innovative activities have public good characteristics in the sense that the cost of producing, say, the first unit of a new good is high compared to the cost of producing subsequent units. Moreover, knowledge of how to produce subsequent units is often widely known once the innovation has occurred and...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Jan 2011

    Transition To FDI Openness: Reconciling Theory And Evidence

    Empirical studies quantifying the economic effects of increased Foreign Direct Investment (FDI) have not provided conclusive evidence that they are positive, as theory predicts. This paper shows that the lack of empirical evidence is consistent with theory if countries are in transition to FDI openness. Anticipated welfare gains lead to...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Aug 2007

    Investment-Specific Technological Change, Skill Accumulation, And Wage Inequality

    Wage inequality between education groups in the United States has increased substantially since the early 1980s. The relative number of college-educated workers has also increased dramatically in the postwar period. This paper presents a unified framework where the dynamics of both skill accumulation and wage inequality arise as an equilibrium...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Oct 2008

    Facts And Myths About The Financial Crisis Of 2008

    The United States is indisputably undergoing a financial crisis and is perhaps headed for a deep recession. Here the authors examine three claims about the way the financial crisis is affecting the economy as a whole and argue that all three claims are myths. They also present three underappreciated facts...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Apr 2011

    Do Newspapers Matter? Short-Run And Long-Run Evidence From The Closure Of The Cincinnati Post

    The Cincinnati Post published its last edition on New Year's Eve 2007, leaving the Cincinnati Enquirer as the only daily newspaper in the market. The next year, fewer candidates ran for municipal office in the Kentucky suburbs most reliant on the Post, incumbents became more likely to win reelection, and...

    Provided By Federal Reserve Bank of Minneapolis

  • White Papers // Feb 2009

    From Great Depression To Great Credit Crisis: Similarities, Differences And Lessons

    If, as it seems, the 2008 global recession is over and it has not been as severe and as prolonged as the great depression who or what should we thank? Has this happened because we have been just lucky this time or because now we make better and more aggressive...

    Provided By Federal Reserve Bank of Minneapolis