National Bureau of Economic Research

Displaying 1-40 of 2190 results

  • 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...

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  • 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 // 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

    Healthy, Wealthy And Wise? Revisited: An Analysis Of The Causal Pathways From Socio-Economic Status To Health

    Much has been said about the stylized fact that the economically successful are not only wealthier but also healthier than the less affluent. There is little doubt about the existence of this socio-economic gradient in health, but there remains a vivid debate about its source. In this paper, the authors...

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  • White Papers // Aug 2011

    Country Heterogeneity And The International Evidence On The Effects Of Fiscal Policy

    This paper shows how the richer frequency and variety of fiscal policy shocks available in an international sample can be analyzed recognizing the heterogeneity that exists across different countries. The main conclusion of the authors' empirical analysis is that the question "What is the fiscal policy multiplier" is an ill-posed...

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  • White Papers // Aug 2011

    Long-term Barriers To The International Diffusion Of Innovations

    The authors document an empirical relationship between the cross-country adoption of technologies and the degree of long-term historical relatedness between human populations. Historical relatedness is measured using genetic distance, a measure of the time since two populations' last common ancestors. They find that the measure of human relatedness that is...

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  • White Papers // Aug 2011

    Employment, Wages And Voter Turnout

    This paper argues that, since activities that provide political information are complementary with leisure, increased labor market activity should lower turnout, but should do so least in prominent elections where information is ubiquitous. Using official county-level voting data and a variety of OLS and TSLS models, the authors find that...

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  • White Papers // Aug 2011

    Why Did U.S. Banks Invest In Highly-rated Securitization Tranches?

    The authors estimate holdings of highly-rated tranches of mortgage securitizations of American deposit-taking banks ahead of the credit crisis and evaluate hypotheses that have been advanced to explain these holdings. They find that holdings of highly-rated tranches were economically trivial for the typical bank, but banks with greater holdings performed...

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  • White Papers // Aug 2011

    Tax Expenditures, The Size And Efficiency Of Government, And Implications For Budget Reform

    One possible explanation for the difficulty in controlling the budget is that a major component of spending - tax expenditures - receives privileged status. It is treated as tax cuts rather than spending. This paper explores the implications of that misclassification and illustrates how it can lead to higher taxes,...

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  • White Papers // Aug 2011

    The Influence Of Irving Fisher On Milton Friedman's Monetary Economics

    This paper examines the influence of Irving Fisher's writings on Milton Friedman's work in monetary economics. The authors focus first on Fisher's influences in monetary theory (the quantity theory of money, the Fisher effect, Gibson's Paradox, the monetary theory of business cycles, and the Phillips Curve, and empirics, e.g. distributed...

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  • White Papers // Aug 2011

    Constituencies And Legislation: The Fight Over The Mcfadden Act Of 1927

    The McFadden Act of 1927 was one of the most hotly contested pieces of legislation in U.S. banking history, and its influence was still felt over half a century later. The act was intended to force states to accord the same branching rights to national banks as they accorded to...

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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

    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...

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  • White Papers // Sep 2008

    Imitative Obesity And Relative Utility

    If human beings care about their relative weight, a form of imitative obesity can emerge. Using Eurobarometer data on 29 countries, this paper provides cross-sectional evidence that overweight perceptions and dieting are influenced by a person's relative BMI, and longitudinal evidence from the German Socioeconomic Panel that well-being is influenced...

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  • White Papers // Sep 2008

    International Financial Remoteness And Macroeconomic Volatility

    This paper shows that proximity to major international financial centers seems to reduce business cycle volatility. In particular, the authors show that countries that are further from major locations of international financial activity systematically experience more volatile growth rates in both output and consumption, even after accounting for political institutions,...

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  • White Papers // Sep 2008

    The Efficacy Of Parochial Politics: Caste, Commitment, And Competence In Indian Local Governments

    Parochial politics is typically associated with poor leadership and low levels of public good provision. This paper explores the possibility that community involvement in politics need not necessarily worsen governance and, indeed, can be efficiency-enhancing when the context is appropriate. Complementing the new literature on the role of community networks...

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  • White Papers // Sep 2008

    Socioeconomic Status And Health: Dimensions And Mechanisms

    This paper reviews the evidence on the well-known positive association between socioeconomic status and health. The authors focus on four dimensions of socioeconomic status - education, financial resources, rank, and race and ethnicity - paying particular attention to how the mechanisms linking health to each of these dimensions diverge and...

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  • White Papers // Sep 2008

    Managing Contribution And Capital Market Risk In A Funded Public Defined Benefit Plan: Impact Of CVaR Cost Constraints

    Using a Monte Carlo framework, the authors analyze the risks and rewards of moving from an unfunded defined benefit pension system to a funded plan for German civil servants, allowing for alternative strategic contribution and investment patterns. In the process they integrate a Conditional Value at Risk (CVaR) restriction on...

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  • White Papers // Sep 2008

    Managerial Incentives And Value Creation: Evidence From Private Equity

    The authors analyze the differences between companies owned by Private Equity (PE) investors and similar public companies. The authors document that PE-owned companies use much stronger incentives for their top executives and have substantially higher debt levels. However, they find little evidence that PE-owned firms outperform public firms in profitability...

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  • White Papers // Sep 2008

    Simple Humans, Complex Insurance, Subtle Subsidies

    The behavioral revolution in economics has demonstrated that human beings often have difficulty making wise choices. The most widely chronicled difficulties arise for decisions made under conditions of uncertainty, those whose consequences unfold over significant amounts of time, and decisions made in complex environments. Unfortunately, these are precisely the elements...

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  • White Papers // Sep 2008

    Wage Formation Between Newly Hired Workers And Employers: Survey Evidence

    Some workers bargain with prospective employers before accepting a job. Others could bargain, but find it undesirable, because their right to bargain has induced a sufficiently favorable offer, which they accept. Yet others perceive that they cannot bargain over pay; they regard the posted wage as a take-it-or-leave-it opportunity. Theories...

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  • White Papers // Sep 2008

    Long-term Care Of The Disabled Elderly: Do Children Increase Caregiving By Spouses?

    Do adult children affect the care elderly parents provide each other? The authors develop two models in which the anticipated behavior of adult children provides incentives for elderly parents to increase care for their disabled spouses. The "Demonstration effect" postulates that adult children learn from a parent's example that family...

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  • White Papers // Sep 2008

    Can Policy Interact With Culture? Minimum Wage And The Quality Of Labor Relations

    Can public policy interfere with culture, such as beliefs and norms of cooperation? The authors investigate this question by evaluating the interactions between the State and the Civil Society, focusing on the labor market. International data shows a negative correlation between union density and the quality of labor relations on...

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  • White Papers // Sep 2008

    Medicare Part D's Effects On Elderly Drug Costs And Utilization

    The authors analyze Medicare Part D's net effect on elderly Out-Of-Pocket (OOP) costs and use of prescription drugs using a dataset containing 1.4 billion prescription records from Wolters Kluwer Health (WKH). These data span the period December 2004-December 2007 and include pharmacy customers whose age as of 2007 is greater...

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  • White Papers // Sep 2008

    Valuing A Homeland Security Policy: Countermeasures For The Threats From Shoulder Mounted Missiles

    This paper reports estimates for the ex ante tradeoffs for three specific homeland security policies that all address a terrorist attack on commercial aircraft with shoulder mounted missiles. The analysis focuses on the willingness to pay for anti-missile laser jamming countermeasures mounted on commercial aircraft compared with two other policies...

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  • White Papers // Apr 2009

    Strategic Interaction Among Heterogeneous Price-setters In An Estimated DSGE Model

    The authors consider a DSGE model in which firms follow one of four price-setting regimes: sticky prices, sticky-information, rule-of-thumb, or full-information flexible prices. The parameters of the model, including the fractions of each type of firm, are estimated by matching the moments of the observed variables of the model to...

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  • White Papers // Sep 2008

    Phillips Curve Inflation Forecasts

    This paper surveys the literature since 1993 on pseudo out-of-sample evaluation of inflation forecasts in the United States and conducts an extensive empirical analysis that recapitulates and clarifies this literature using a consistent data set and methodology. The literature review and empirical results are gloomy and indicate that Phillips curve...

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  • White Papers // Sep 2008

    Capital Flow Bonanzas: An Encompassing View Of The Past And Present

    A considerable literature has examined the causes, consequences, and policy responses to surges in international capital flows. A related strand of papers has attempted to catalog current account reversals and capital account "Sudden stops." This paper offers an encompassing approach with an algorithm cataloging capital inflow bonanzas in both advanced...

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  • White Papers // Sep 2008

    International Evidence On Well-being

    National Time Accounting is a way of measuring society's well-being, based on time use. In this paper the author reviews cross-country evidence on happiness and life satisfaction and consider whether these data will likely be replaced by the U-index. The author finds that first, that there are many similarities. According...

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  • White Papers // May 2010

    Demand Estimation Under Incomplete Product Availability

    Incomplete product availability is an important feature of many markets; ignoring changes in availability may bias demand estimates. The authors study a new dataset from a wireless inventory system installed on 54 vending machines to track product availability every four hours. The data allow accounting for product availability when estimating...

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  • White Papers // Sep 2008

    New Keynesian Models: Not Yet Useful For Policy Analysis

    Macroeconomists have largely converged on method, model design, reduced-form shocks, and principles of policy advice. The main disagreements today are about implementing the methodology. Some think New Keynesian models are ready to be used for quarter-to-quarter quantitative policy advice; the authors do not. Focusing on the state-of-the-art version of these...

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  • White Papers // Sep 2008

    How Much Does Immigration Boost Innovation?

    The authors measure the extent to which skilled immigrants increase innovation in the United States by exploring individual patenting behavior as well as state-level determinants of patenting. The 2003 National Survey of College Graduates shows that immigrants patent at double the native rate, and that this is entirely accounted for...

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  • White Papers // Sep 2008

    Housing Busts And Household Mobility

    Using two decades of American Housing Survey data from 1985-2005, the authors estimate the impact on household mobility of owners having negative equity in their homes and of rising mortgage interest rates. They find that both lead to lower, not higher, mobility rates over time. The impacts are economically large,...

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  • White Papers // Oct 2008

    Free Distribution Or Cost-Sharing? Evidence From A Malaria Prevention Experiment

    It is often argued that cost-sharing - charging a subsidized, positive price - for a health product is necessary to avoid wasting resources on those who will not use or do not need the product. The authors explore this argument through a field experiment in Kenya, in which they randomized...

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  • White Papers // Oct 2008

    Understanding U.S. Corporate Tax Losses

    Recent data present a puzzle: the ratio of corporate tax losses to positive income was much higher around 2001 than in earlier recessions. Using a comprehensive 1982-2005 sample of U.S. corporation tax returns, the authors explore a variety of potential explanations for this surge in tax losses, taking account of...

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  • White Papers // Dec 2010

    Psychiatric Disorders And Employment: New Evidence From The Collaborative Psychiatric Epidemiology Surveys (CPES)

    This paper uses the National Comorbidity Survey - Replication to estimate the effects of recent psychiatric disorder on employment, hours worked, and earnings. The authors employ methods proposed in Altonji, Elder and Taber (2005) which use selection on observable traits to provide information regarding selection along unobservable factors. Among males,...

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  • White Papers // Oct 2008

    Optimal Taxation And Social Insurance With Endogenous Private Insurance

    This paper characterizes the welfare gains from redistributive taxation and social insurance in an environment where the private sector provides partial insurance. The authors analyze stylized models in which adverse selection, pre-existing information, or imperfect optimization in private insurance markets create a role for government intervention. They derive simple formulas...

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  • White Papers // Oct 2008

    Fixed Costs And Long-Lived Investments

    Neoclassical investment models predict that firms should make frequent, small adjustments to their capital stocks. Microeconomic evidence, however, shows just the opposite - firms make infrequent, large adjustments to their capital stocks. In response, researchers have developed models with fixed costs of adjustment to explain the data. While these models...

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  • White Papers // Sep 2009

    Will The U.S. Bank Recapitalization Succeed? Eight Lessons From Japan

    During the financial crisis that started in 2007, the U.S. government has used a variety of tools to try to rehabilitate the U.S. banking industry. Many of those strategies were used also in Japan to combat its banking problems in the 1990s. There are also a surprising number of other...

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  • White Papers // Oct 2008

    Market Work, Home Work And Taxes: A Cross Country Analysis

    This paper uses a simple model of labor supply extended to allow for home production to understand the extent to which differences in taxes can account for differences in time allocations between the US and Europe. Once home production is included, the elasticity of substitution between consumption and leisure is...

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  • White Papers // Oct 2008

    Sufficient Statistics For Welfare Analysis: A Bridge Between Structural And Reduced-Form Methods

    The debate between "Structural" and "Reduced-form" approaches has generated substantial controversy in applied economics. This paper reviews a recent literature in public economics that combines the advantages of reduced-form strategies - transparent and credible identification - with an important advantage of structural models - the ability to make predictions about...

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  • White Papers // Oct 2008

    The Subprime Panic

    Understanding the ongoing credit crisis or panic requires understanding the designs of a number of interlinked securities, special purpose vehicles, and derivatives, all related to subprime mortgages. The author describes the relevant securities, derivatives, and vehicles to show: how the chain of interlinked securities was sensitive to house prices; how...

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  • White Papers // Oct 2008

    Taxing Leisure Complements

    Ever since Corlett and Hague (1953), it has been understood that it tends to be optimal on second-best grounds to (relatively) tax complements to leisure and subsidize substitutes because doing so helps to offset the distorting effect of taxation on labor supply. Yet in the context of simultaneous optimization of...

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  • White Papers // Oct 2008

    Partial Prescriptions For Decisions With Partial Knowledge

    This paper concerns the prescriptive function of decision analysis. The author supposes that an agent must choose an action yielding welfare that varies with the state of nature. The agent has a welfare function and beliefs, but he does not know the actual state of nature. It is often argued...

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  • White Papers // Oct 2008

    Sudden Stops, Sectoral Reallocations, And The Real Exchange Rate

    A sudden stop of capital flows into a developing country tends to be followed by a rapid switch from trade deficits to surpluses, a depreciation of the real exchange rate, and decreases in output and total factor productivity. Substantial reallocation takes place from the nontraded sector to the traded sector....

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  • White Papers // Oct 2008

    Estate Acts, 1600 To 1830: A New Source For British History

    A new database demonstrates that between 1600 and 1830, Parliament passed thousands of acts restructuring rights to real and equitable estates. These estate acts enabled individuals and families to sell, mortgage, lease, exchange, and improve land previously bound by landholding and inheritance laws. This paper provides a factual foundation for...

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  • White Papers // Oct 2008

    Temporary Price Changes And The Real Effects Of Monetary Policy

    In the data, prices change both temporarily and permanently. Standard Calvo models focus on permanent price changes and take one of two shortcuts when confronted with the data: drop temporary changes from the data or leave them in and treat them as permanent. The authors provide a menu cost model...

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  • White Papers // Oct 2008

    International Capital Flows Under Dispersed Information: Theory And Evidence

    The authors develop a new theory of international capital flows based on dispersed information across individual investors. There is extensive evidence of information heterogeneity within and across countries, which has proven critical to understanding asset price behavior. They introduce information dispersion into an open economy dynamic general equilibrium portfolio choice...

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  • White Papers // Oct 2008

    Sectoral Vs. Aggregate Shocks: A Structural Factor Analysis Of Industrial Production

    This paper uses factor analytic methods to decompose Industrial Production (IP) into components arising from aggregate shocks and idiosyncratic sector-specific shocks. An approximate factor model finds that nearly all (90%) of the variability of quarterly growth rates in IP are associated with common factors. Because common factors may reflect sectoral...

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  • White Papers // Feb 2010

    The Transmission Of Women's Fertility, Human Capital And Work Orientation Across Immigrant Generations

    Using 1995 - 2006 Current Population Survey and 1970 - 2000 Census data, the authors find that the fertility, education and labor supply of US-born women with foreign-born parent(s) are significantly positively affected by the immigrant generation's levels of these variables, with the effect of the fertility and labor supply...

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  • White Papers // Oct 2008

    Gender, Source Country Characteristics And Labor Market Assimilation Among Immigrants: 1980-2000

    The authors use 1980, 1990 and 2000 Census data to study the impact of source country characteristics on the labor supply assimilation profiles of married adult immigrant women and men. Women migrating from countries where women have high relative labor force participation rates work substantially more than women coming from...

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  • White Papers // Oct 2008

    Monopoly Power And Endogenous Product Variety: Distortions And Remedies

    The authors study the efficiency properties of a dynamic, stochastic, general equilibrium, macroeconomic model with monopolistic competition and firm entry subject to sunk costs, a time-to-build lag, and exogenous risk of firm destruction. Under inelastic labor supply and linearity of production in labor, the market economy is efficient if and...

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  • White Papers // Aug 2009

    Estimating Matching Games With Transfers

    Economists wish to use data on matches to learn about the structural primitives that govern sorting. The author shows how to use equilibrium data on who matches with whom for semi parametric estimation of match production functions in many-to-many, two-sided matching games with transferable utility. Inequalities derived from equilibrium necessary...

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