National Bureau of Economic Research

Displaying 1-40 of 2033 results

  • White Papers // Aug 2011

    Innovation And Productivity

    What do we know about the relationship between innovation and productivity among firms? The workhorse model of this relationship is presented and the implications of analysis using this model and the usually available data on product and process innovation are derived. The recent empirical evidence on the relationship between innovation...

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  • White Papers // Aug 2011

    Deregulation, Consolidation, And Efficiency: Evidence From U.S. Nuclear Power

    For the first four decades of its existence the U.S. nuclear power industry was run by regulated utilities, with most companies owning only one or two reactors. Beginning in the late 1990s electricity markets in many states were deregulated and almost half of the nation's 103 reactors were sold to...

    Provided By National Bureau of Economic Research

  • White Papers // Aug 2011

    Propose With A Rose? Signaling In Internet Dating Markets

    The large literature on costly signaling and the somewhat scant literature on preference signaling had varying success in showing the effectiveness of signals. The authors use a field experiment to show that even when everyone can send a signal, signals are free and the only costs are opportunity costs, sending...

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  • White Papers // Aug 2011

    Financial Literacy, Retirement Planning, And Household Wealth

    There is sample empirical evidence documenting widespread financial illiteracy and limited pension knowledge. At the same time, the distribution of wealth is widely dispersed and many workers arrive on the verge of retirement with few or no personal assets. In this paper, the authors investigate the relationship between financial literacy...

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  • White Papers // Aug 2011

    A Model Of The Consumption Response To Fiscal Stimulus Payments

    A wide body of empirical evidence, based on randomized experiments, finds that 20-40 percent of fiscal stimulus payments (e.g. tax rebates) are spent on nondurable household consumption in the quarter that they are received. The authors develop a structural economic model to interpret this evidence. Their model integrates the classical...

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  • White Papers // Aug 2011

    Ethnic Innovation And U.S. Multinational Firm Activity

    This paper studies the impact that immigrant innovators have on the global activities of U.S. firms by analyzing detailed data on patent applications and on the operations of the foreign affiliates of U.S. multinational firms. The results indicate that increases in the share of a firm's innovation performed by inventors...

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  • White Papers // Aug 2011

    Country Size, International Trade, And Aggregate Fluctuations In Granular Economies

    This paper proposes a new mechanism by which country size and international trade affect macroeconomic volatility. The authors study a multi-country, multi-sector model with heterogeneous firms that are subject to idiosyncratic firm-specific shocks. When the distribution of firm sizes follows a power law with an exponent close to -1, the...

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  • White Papers // Aug 2011

    Behavioral Corporate Finance: An Updated Survey

    The authors survey the theory and evidence of behavioral corporate finance, which generally takes one of two approaches. The market timing and catering approach views managerial financing and investment decisions as rational managerial responses to securities mispricing. The managerial biases approach studies the direct effects of managers' biases and nonstandard...

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  • White Papers // Aug 2011

    A Political Theory Of Populism

    When voters fear that politicians may have a right-wing bias or that they may be influenced or corrupted by the rich elite, signals of true left-wing conviction are valuable. As a consequence, even a moderate politician seeking reelection chooses "Populist' policies - i.e., policies to the left of the median...

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  • White Papers // Aug 2011

    Japanese Government Debt And Sustainability Of Fiscal Policy

    The authors construct quarterly series of the revenues, expenditures, and debt outstanding for Japan from 1980 to 2010, and analyze the sustainability of the fiscal policy. They pursue three approaches to examine the sustainability. First, they calculate the minimum tax rate that stabilizes the debt to GDP ratio given the...

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  • White Papers // Aug 2011

    Estimating The Gains From Trade In The Market For Innovation: Evidence From The Transfer Of Patents

    The "Market for innovation" - the sale and licensing of patents - is an often discussed source of incentives to invest in R&D. This paper presents and estimates a model of the transfer and renewal of patents that, under some assumptions, allows the authors to quantify the gains resulting from...

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  • White Papers // Aug 2011

    Pay Cuts For The Boss: Executive Compensation In The 1940s

    Executive pay fell during the 1940s, marking the last notable decrease in the past 70 years. The authors study this decline using a new panel dataset on the remuneration of top executives in 246 firms. They find that government regulation - including explicit salary restrictions and taxation - had, at...

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  • White Papers // Aug 2011

    The Effect Of Pollution On Labor Supply: Evidence From A Natural Experiment In Mexico City

    Moderate effects of pollution on health may exert an important influence on labor market decisions. The authors exploit exogenous variation in pollution due to the closure of a large refinery in Mexico City to understand how pollution impacts labor supply. The closure led to an 8 percent decline in pollution...

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  • White Papers // Aug 2011

    Natural Expectations, Macroeconomic Dynamics, And Asset Pricing

    How does an economy behave if fundamentals are truly hump-shaped, exhibiting momentum in the short run and partial mean reversion in the long run, and agents do not know that fundamentals are hump-shaped and base their beliefs on parsimonious models that they fit to the available data? A class of...

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  • White Papers // Aug 2011

    Do Hospitals Cross Subsidize?

    Cross-subsidies are often considered the principal mechanism through which hospitals provide unprofitable care. Yet, hospitals' reliance on and extent of cross-subsidization are difficult to establish. The authors exploit entry by cardiac specialty hospitals as an exogenous shock to incumbent hospitals' profitability and in turn to their ability to cross-subsidize unprofitable...

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  • White Papers // Aug 2011

    Inefficient Provision Of Liquidity

    The authors study an economy where the lack of a simultaneous double coincidence of wants creates the need for a relatively safe asset (money). They show that, even in the absence of asymmetric information or an agency problem, the private provision of liquidity is inefficient. The reason is that liquidity...

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  • White Papers // Aug 2011

    The "Caps" Prediction System And Stock Market Returns

    The authors study the predictive power of approximately 2.5 million stock picks submitted by individual users to the "CAPS" website run by the Motley Fool company. These picks prove to be surprisingly informative about future stock prices. Indeed, a strategy of shorting stocks with a disproportionate number of negative picks...

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  • White Papers // Aug 2011

    Building Peace: The Impact Of Aid On The Labor Market For Insurgents

    Employment growth could reduce violence during civil conflicts. To determine if increased employment affects violence the authors analyzed varying employment in development programs run by different US military divisions in Iraqi districts. Employment levels vary with funding periods and the military division in charge. Controlling for variability between districts, they...

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  • White Papers // Aug 2011

    Capital Mobility And Asset Pricing

    The authors present a model for the equilibrium movement of capital between asset markets that are distinguished only by the levels of capital invested in each. Investment in that market with the greatest amount of capital earns the lowest risk premium. Intermediaries optimally trade off the costs of intermediation against...

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  • White Papers // Aug 2011

    Information Percolation In Segmented Markets

    The authors calculate equilibria of dynamic double-auction markets in which agents are distinguished by their preferences and information. Over time, agents are privately informed by bids and offers. Investors are segmented into groups that differ with respect to characteristics determining information quality, including initial information precision as well as market...

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  • White Papers // Aug 2011

    Labor Market Flows In The Cross Section And Over Time

    Many theoretical models of labor market search imply a tight link between worker flows (hires and separations) and job gains and losses at the employer level. Partly motivated by these theories, the authors exploit establishment-level data from U.S. sources to study the relationship between worker flows and job flows in...

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  • White Papers // Aug 2011

    Why Do Voters Dismantle Checks And Balances?

    Voters often dismantle constitutional checks and balances on the executive. If such checks and balances limit presidential abuses of power and rents, why do voters support their removal? The authors argue that by reducing politician rents, checks and balances also make it cheaper to bribe or influence politicians through non-electoral...

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  • White Papers // Aug 2011

    Spillover Effects In Mutual Fund Companies

    The authors' paper investigates spillover effects across different business segments of publicly traded mutual fund management companies. They find that the prior stock price performance of the management company has a significant impact on the money flows and the management turnover of the affiliated mutual funds. Mutual funds managed by...

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  • White Papers // Aug 2011

    A Gains From Trade Perspective On Macroeconomic Fluctuations

    Business cycles reflect changes over time in the amount of trade between individuals. In this paper, the authors show that incorporating explicitly intra-temporal gains from trade between individuals into a macroeconomic model can provide new insight into the potential mechanisms driving economic fluctuations as well as modify key policy implications....

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  • White Papers // Aug 2011

    Are Corporate Default Probabilities Consistent With The Static Tradeoff Theory?

    Default probability plays a central role in the static tradeoff theory of capital structure. The authors directly test this theory by regressing the probability of default on proxies for costs and benefits of debt. Contrary to predictions of the theory, firms with higher bankruptcy costs, i.e., smaller firms and firms...

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  • White Papers // Aug 2011

    The Extensive Margin, Sectoral Shares And International Business Cycles

    This paper documents some previously neglected features of sectoral shares at business cycle frequencies in OECD economies. In particular, the authors find that the nontraded sector share of output is as volatile as aggregate GDP, and that for most countries, the nontraded sector is distinctly countercyclical. While the standard international...

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  • White Papers // Aug 2011

    Consumption Risk-sharing And The Real Exchange Rate: Why Does The Nominal Exchange Rate Make Such A Difference?

    A basic prediction of efficient risk-sharing is that relative consumption growth rates across countries or regions should be positively related to real exchange rate growth rates across the same areas. The authors investigate this hypothesis, employing a newly constructed multi-country and multi-regional data set. Within countries, they find significant evidence...

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  • White Papers // Aug 2011

    Would People Behave Differently If They Better Understood Social Security? Evidence From A Field Experiment

    This paper presents the results of a field experiment in which a sample of older workers was randomized between a treatment group that was given information about key Social Security provisions and a control group that was not. The experiment was designed to examine whether it is possible to affect...

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  • White Papers // Aug 2011

    Exam High Schools And Academic Achievement: Evidence From New York City

    Publicly funded exam schools educate many of the world's most talented students. These schools typically contain higher achieving peers, more rigorous instruction, and additional resources compared to regular public schools. This paper uses a sharp discontinuity in the admissions process at three prominent exam schools in New York City to...

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  • White Papers // Aug 2011

    Covariances Versus Characteristics In General Equilibrium

    The authors question a deep-ingrained doctrine in asset pricing: if an empirical characteristic-return relation is consistent with investor "Rationality," the relation must be "Explained" by a risk factor model. The investment approach changes the big picture of asset pricing. Factors formed on characteristics are not necessarily risk factors: characteristics-based factor...

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  • White Papers // Aug 2011

    Equilibrium Wage And Employment Dynamics In A Model Of Wage Posting Without Commitment

    A rich but tractable variant of the Burdett-Mortensen model of wage setting behavior is formulated and a dynamic market equilibrium solution to the model is defined and characterized. In the model, firms cannot commit to wage contracts. Instead, the Markov perfect equilibrium to the wage setting game, characterized by Coles...

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  • White Papers // Aug 2011

    A Simple Nonparametric Approach To Estimating The Distribution Of Random Coefficients In Structural Models

    The authors explore a nonparametric mixtures estimator for recovering the joint distribution of random coefficients in economic models. The estimator is based on linear regression subject to linear inequality constraints and is computationally attractive compared to alternative, nonparametric estimators. They provide conditions under which the estimated distribution function converges to...

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  • White Papers // Aug 2011

    Foreign Firms And Local Communities

    The literature on the effects of Foreign Direct Investment (FDI) and activities of MultiNational Enterprises (MNEs) on host-countries has been almost exclusively focused on issues of productivity, growth and wages. The authors argue that this leaves quite a bit of important unexplored areas of inquiry, particularly those connected with the...

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  • White Papers // Aug 2011

    Systemic Risk Exposures: A 10-by-10-by-10 Approach

    Here, the author presents and discuss a "10-by-10-by-10" network-based approach to monitoring systemic financial risk. Under this approach, a regulator would analyze the exposures of a core group of systemically important financial firms to a list of stressful scenarios, say 10 in number. For each scenario, about 10 such designated...

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  • White Papers // Aug 2011

    The Exact Law Of Large Numbers For Independent Random Matching

    This paper provides a mathematical foundation for independent random matching of a large population, as widely used in the economics literature. The authors consider both static and dynamic systems with random mutation, partial matching arising from search, and type changes induced by matching. Under independence assumptions at each randomization step,...

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  • White Papers // Aug 2011

    The Importance Of The Meaning And Measurement Of "Affordable" In The Affordable Care Act

    This working paper highlights the practical importance of two critical but under-explored assumptions behind existing estimates of the Affordable Care Act (ACA)'s potential impact on the mix of employees and families who may have Employer-Sponsored health Insurance (ESI) in the future or may receive subsidies in the new health insurance...

    Provided By National Bureau of Economic Research

  • White Papers // Aug 2011

    Carry Trades And Risk

    Carry trades, in which an investor borrows a low interest rate currency and lends a high interest rate currency, have been profitable historically. The risk exposure of carry traders might explain their high returns, but conventional models of risk do not work because traditional risk factors, used to price the...

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  • White Papers // Aug 2011

    The Continental Dollar: Initial Design, Ideal Performance, And The Credibility Of Congressional Commitment

    An alternative history of the Continental Dollar is constructed from the original resolutions passed by Congress. The Continental Dollar was a zero-interest bearer bond, not a fiat currency. The public could redeem it at face value in specie at fixed future dates. Being a zero-interest bearer bond, discounting must be...

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  • White Papers // Aug 2011

    Substitution Between Individual And Cultural Capital: Pre-migration Labor Supply, Culture And US Labor Market Outcomes Among Immigrant Women

    In this paper, the authors use New Immigrant Survey data to investigate the impact of immigrant women's own labor supply prior to migrating and female labor supply in their source country to provide evidence on the role of human capital and culture in affecting their labor supply and wages in...

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  • White Papers // Aug 2011

    Unemployment In Latin America And The Caribbean

    This paper constructs a new data set on unemployment rates in Latin America and the Caribbean and then explores the determinants of unemployment. The authors compare different countries, finding that unemployment is influenced by the size of the rural population and that the effects of government regulations are generally weak....

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  • White Papers // Apr 2009

    The Great Inflation In The United States And The United Kingdom: Reconciling Policy Decisions And Data Outcomes

    The authors argue that the Great Inflation experienced by both the United Kingdom and the United States in the 1970s has an explanation valid for both countries. The explanation does not appeal to common shocks or to exchange rate linkages, but to the common doctrine underlying the systematic monetary policy...

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  • White Papers // Apr 2009

    Euro Membership As A U.K. Monetary Policy Option: Results From A Structural Model

    Developments in open-economy modeling, and the accumulation of experience with the monetary policy regimes prevailing in the United Kingdom and the euro area, have increased the ability to evaluate the effects that joining monetary union would have on the U.K. economy. This paper considers the debate on the United Kingdom's...

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  • White Papers // Apr 2009

    Gender Interactions Within Hierarchies: Evidence From The Political Arena

    This paper studies gender interactions within hierarchical organizations using a large data set on the duration of Italian municipal governments elected between 1993 and 2003. A municipal government can be viewed as a hierarchy, whose stability over time depends on the degree of cooperation between and within ranks. The authors...

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  • White Papers // Apr 2009

    Wall Street's First Corporate Governance Crisis: The Panic Of 1826

    In July of 1826, several prominent Wall Street firms abruptly went bankrupt, amid scandalous revelations of fraudulent financial practices by their management. Although mostly forgotten today, these events represented a watershed in the early development of the corporation laws and investor protections governing Wall Street: in the aftermath of the...

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  • White Papers // Apr 2009

    Regional Trade Integration And Multinational Firm Strategies

    This paper analyzes the effects of the formation of a regional trade agreement on the level and nature of multinational firm activity. The authors examine aggregate data that captures the response of U.S. multinational firms to the formation of the ASEAN free trade agreement. Observed patterns guide the development of...

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  • White Papers // Apr 2009

    Do Regulations Based On Credit Ratings Affect A Firms Cost Of Capital?

    In February 2003, the SEC officially certified a fourth credit rating agency, Dominion Bond Rating Service ("DBRS"), for use in bond investment regulations. After DBRS certification, bond yields change in the direction implied by the firm's DBRS rating relative to its ratings from other certified rating agencies. A one notch...

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  • White Papers // Apr 2009

    Capm For Estimating The Cost Of Equity Capital: Interpreting The Empirical Evidence

    The authors argue that the CAPM may be a reasonable model for estimating the cost of capital for projects in spite of increasing criticisms in the empirical asset pricing literature. Following Hoberg and Welch (2007), they first show that there is more support for the CAPM than has been previously...

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  • White Papers // Apr 2009

    Global Financial Structure And Climate Change

    This paper analyzes the medium to long-term implications of global warming for the evolution of global financial structures. Stern (2007) and other related scientific literature reports that greenhouse gas emissions generated by human activities will very possibly lead to global temperature increase of 1-5 degrees C by 2050. This will...

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  • White Papers // Mar 2010

    Financial Integration And Business Cycle Synchronization

    The authors identify the effect of financial integration on international business cycle synchronization, by utilizing a confidential database on banks' bilateral exposure and employing a country-pair panel instrumental variables approach. Countries that become more integrated over time have less synchronized growth patterns, conditional on global shocks and country-pair factors. To...

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  • White Papers // Apr 2009

    Can You Get What You Pay For? Pay-for-performance And The Quality Of Healthcare Providers

    Despite the popularity of Pay-for-Performance (P4P) among health policymakers and private insurers as a tool for improving quality of care, there is little empirical basis for its effectiveness. The authors use data from published performance reports of physician medical groups contracting with a large network HMO to compare clinical quality...

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  • White Papers // Apr 2009

    Does Affirmative Action Lead To Mismatch? A New Test And Evidence

    The authors argue that once they take into account the students' rational enrollment decisions, mismatch in the sense that the intended beneficiary of affirmative action admission policies are made worse off could occur only if selective universities possess private information about students' post-enrollment treatment effects. This necessary condition for mismatch...

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  • White Papers // Jun 2009

    Sixty Years After The Magic Carpet Ride: The Long-Run Effect Of The Early Childhood Environment On Social And Economic Outcomes

    This paper estimates the effect of the childhood environment on a large array of social and economic outcomes lasting almost 60 years, for both the affected cohorts and for their children. To do this, the authors exploit a natural experiment provided by the 1949 Magic Carpet operation, where over 50,000...

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  • White Papers // Apr 2009

    Sophisticated Monetary Policies

    In standard approaches to monetary policy, interest rate rules often lead to indeterminacy. Sophisticated policies, which depend on the history of private actions and can differ on and off the equilibrium path, can eliminate indeterminacy and uniquely implement any desired competitive equilibrium. Two types of sophisticated policies illustrate the approach....

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  • White Papers // Apr 2009

    Bayesian And Frequentist Inference In Partially Identified Models

    A large sample approximation of the posterior distribution of partially identified structural parameters is derived for models that can be indexed by a finite-dimensional reduced form parameter vector. It is used to analyze the differences between frequentist confidence sets and Bayesian credible sets in partially identified models. A key difference...

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  • White Papers // Apr 2009

    Information Asymmetry, Information Precision, And The Cost Of Capital

    The consequences of information differences across investors in capital markets are still much debated. This paper examines the relation between information differences across investors and the cost of capital, and makes three points. First, in models of perfect competition, information differences across investors affect a firm's cost of capital through...

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  • White Papers // Apr 2009

    Carbon Motivated Regional Trade Arrangements: Analytics And Simulations

    This paper presents both analytics and numerical simulation results relevant to proposals for carbon motivated regional trade agreements summarized in Dong & Whalley(2008). Unlike traditional regional trade agreements, by lowing tariffs on participant's low carbon emission goods and setting penalties on outsiders to force them to join such agreements, carbon...

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  • White Papers // Apr 2009

    A New Test Of Borrowing Constraints For Education

    The authors discuss a simple model of intergenerational transfers with one-sided altruism: parents care about their child but the child does not reciprocate. Parents and children make investments in the child's education, investments for other purposes, and parents can transfer cash to their child. They show that for an identifiable...

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  • White Papers // Apr 2009

    The Alchemy Of CDO Credit Ratings

    Collateralized Loan Obligations (CLOs) were one of the largest and fastest growing segments of the structured finance market, fueling the 2003-2007 booms in syndicated loans and leveraged buyouts. The credit crisis brought CLO issuance to a halt, and as a result the leveraged loan market dried up. Similar to other...

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  • White Papers // Apr 2009

    An Elaborated Global Climate Policy Architecture: Specific Formulas And Emission Targets For All Countries In All Decades

    This paper analyzes a detailed plan to set quantitative national limits on emissions of greenhouse gases, following along the lines of the Kyoto Protocol. It is designed to fill in the most serious gaps: the absence of targets extending as far as 2100, the absence of participation by the United...

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  • White Papers // Apr 2009

    Strategy-Proofness Versus Efficiency In Matching With Indifferences: Redesigning The New York City High School Match

    The design of the New York City (NYC) High School match involved tradeoffs among efficiency, stability and strategy-proofness that raise new theoretical questions. The authors analyze a model with indifferences - ties - in school preferences. Simulations with field data and the theory favor breaking indifferences the same way at...

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  • White Papers // Apr 2009

    Listing Of Working Papersrisk Matters: The Real Effects Of Volatility Shocks

    This paper shows how changes in the volatility of the real interest rate at which small open emerging economies borrow have a quantitatively important effect on real variables like output, consumption, investment, and hours worked. To motivate the investigation, the authors document the strong evidence of time-varying volatility in the...

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  • White Papers // Apr 2009

    Gender Roles And Medical Progress

    The entry of married women into the labor force is one of the most notable economic phenomena of the twentieth century. The authors argue that medical progress played a critical role in this process. Improved maternal health alleviated the adverse effects of pregnancy and childbirth on women's ability to work,...

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  • White Papers // Apr 2009

    DSGE Model-Based Forecasting Of Non-Modelled Variables

    This paper develops and illustrates a simple method to generate a DSGE model-based forecast for variables that do not explicitly appear in the model (non-core variables). The authors use auxiliary regressions that resemble measurement equations in a dynamic factor model to link the non-core variables to the state variables of...

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  • White Papers // Apr 2009

    Sticky Prices Versus Monetary Frictions: An Estimation Of Policy Trade-offs

    The authors develop a two-sector monetary model with a centralized and decentralized market. Activities in the centralized market resemble those in a standard New Keynesian economy with price rigidities. In the decentralized market agents engage in bilateral exchanges for which money is essential. The model is estimated and evaluated based...

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  • White Papers // Apr 2009

    Outside And Inside Liquidity

    The authors consider a model of liquidity demand arising from a possible maturity mismatch between asset revenues and consumption. This liquidity demand can be met with either cash reserves (inside liquidity) or via asset sales for cash (outside liquidity). The question they address is what determines the mix of inside...

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  • White Papers // Apr 2009

    Forced Sales And House Prices

    This paper uses data on house transactions in the state of Massachusetts over the last 20 years to show that houses sold after foreclosure, or close in time to the death or bankruptcy of at least one seller, are sold at lower prices than other houses. Foreclosure discounts are particularly...

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  • White Papers // Apr 2009

    Technology Diffusion And Productivity Growth In Health Care

    Inefficiency in the U.S. health care system has often been characterized as "Flat of the curve" spending providing little or no incremental value. In this paper, the authors draw on macroeconomic models of diffusion and productivity to better explain the empirical patterns of outcome improvements in heart attacks (acute myocardial...

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  • White Papers // Apr 2009

    Credit Market Shocks And Economic Fluctuations: Evidence From Corporate Bond And Stock Markets

    To identify disruptions in credit markets, research on the role of asset prices in economic fluctuations has focused on the information content of various corporate credit spreads. The authors re-examine this evidence using a broad array of credit spreads constructed directly from the secondary bond prices on outstanding senior unsecured...

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  • White Papers // Apr 2009

    The Great Inflation Drift

    A standard statistical perspective on the U.S. Great Inflation is that it involves an increase in the stochastic trend rate of inflation, defined as the long-term forecast of inflation at each point in time. That perspective receives support from two sources: the behavior of long-term interest rates which are generally...

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  • White Papers // Apr 2009

    Complementarity And Aggregate Implications Of Assortative Matching: A Nonparametric Analysis

    This paper presents methods for evaluating the effects of reallocating an indivisible input across production units, taking into account resource constraints by keeping the marginal distribution of the input fixed. When the production technology is nonseparable, such reallocations, although leaving the marginal distribution of the reallocated input unchanged by construction,...

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  • White Papers // Jun 2009

    Equilibrium Effects Of Public Goods: The Impact Of Community Water Fluoridation On Dentists

    In this paper the authors consider how the dental industry responded to the addition of fluoride to public drinking water. They take advantage of the staggered introduction of fluoridation throughout the country to analyze the changes in numbers of within-county dentists relative to physicians in the years surrounding the change...

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  • White Papers // Jun 2009

    Bailouts, The Incentive To Manage Risk, And Financial Crises

    A firm's termination leads to bankruptcy costs. This may create an incentive for outside stakeholders or the firm's debtholders to bail out the firm as bankruptcy looms. Because of this implicit guarantee, firm shareholders have an incentive to increase volatility in order to exploit the implicit protection. However, if they...

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  • White Papers // Jun 2009

    Inequality Trends For Germany In The Last Two Decades: A Tale Of Two Countries

    In this paper the authors first document inequality trends in wages, hours worked, earnings, consumption, and wealth for Germany from the last twenty years. They generally find that inequality was relatively stable in West Germany until the German unification, and then trended upwards for wages and market incomes, especially after...

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  • White Papers // Jun 2009

    Learning By Drilling: Inter-firm Learning And Relationship Persistence In The Texas Oilpatch

    This paper examines the importance of learning-by-doing that is specific not just to individual firms, but to pairs of firms working together in a contracting relationship. Using new, detailed data from the oil and gas industry, the author finds that the joint productivity of an oil production company and its...

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  • White Papers // Jun 2009

    Do Race And Fairness Matter In Generosity? Evidence From A Nationally Representative Charity Experiment

    The authors present a dictator game experiment where the recipients are local charities that serve the poor. Donors consist of approximately 1000 participants from a nationally representative respondent panel that is maintained by a private survey research firm, Knowledge Networks. They randomly manipulate the perceived race and worthiness of the...

    Provided By National Bureau of Economic Research

  • White Papers // Jun 2009

    Adoption Curves And Social Interactions

    This paper considers the observational implications of social influences on adoption decisions for an environment of perfect foresight adopters. The authors argue that social influences can produce two observable effects: discontinuities in unconditional adoption curves and pattern reversals in conditional adoption curves, in which earlier adoption is found for one...

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  • White Papers // Jun 2009

    Schooling, Cognitive Skills, And The Latin American Growth Puzzle

    Economic development in Latin America has trailed most other world regions over the past four decades despite its relatively high initial development and school attainment levels. This puzzle can be resolved by considering the actual learning as expressed in tests of cognitive skills, on which Latin American countries consistently perform...

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  • White Papers // Jun 2009

    China~s Land Market Auctions: Evidence Of Corruption

    This paper studies the urban land market in China in 2003 - 2007. In China, all urban land is owned by the state. Leasehold use rights for land for (re)development are sold by city governments and are a key source of city revenue. Leasehold sales are viewed as a major...

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  • White Papers // Jun 2009

    The Quality Of Medical Care, Behavioral Risk Factors, And Longevity Growth

    The rate of increase of longevity has varied considerably across U.S. states since 1991. This paper examines the effect of the quality of medical care, behavioral risk factors (obesity, smoking, and AIDS incidence), and other variables (education, income, and health insurance coverage) on life expectancy and medical expenditure using longitudinal...

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  • White Papers // Jun 2009

    Empirics Of Strategic Interdependence: The Case Of The Racial Tipping Point

    The Schelling model of a "Tipping point" in racial segregation, in which whites flee a neighborhood once a threshold of nonwhites is reached, is a canonical model of strategic interdependence. The idea of "Tipping" explaining segregation is widely accepted in the academic literature and popular media. The author uses census...

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