1,721,382 research outputs found
Asset Prices and Unemployment Fluctuations: A Resolution of the Unemployment Volatility Puzzle
No full textReplication package for Asset Prices and Unemployment Fluctuations: A Resolution of the Unemployment Volatility Puzzle by PATRICK J. KEHOE, PIERLAURO LOPEZ, VIRGILIU MIDRIGAN, and ELENA PASTORIN
International business cycles with endogenous incomplete markets
No full textBackus, Kehoe, and Kydland (1992), Baxter and Crucini (1995), and Stockman and
Tesar (1995) find two major discrepancies between standard international business cycle
models with complete markets and the data: In the models, cross-country correlations are
much higher for consumption than for output, while in the data the opposite is true; and
cross-country correlations of employment and investment are negative, while in the data
they are positive. This paper introduces a friction into a standard model that helps resolve
these anomalies. The friction is that international loans are imperfectly enforceable; any
country can renege on its debts and suffer the consequences for future borrowing. To
solve for equilibrium in this economy with endogenous incomplete markets, the methods
of Marcet and Marimon (1999) are extended. Incorporating the friction helps resolve the
anomalies more than does exogenously restricting the assets that can be traded
Competitive Equilibria with Limited Enforcement
Full text linkWe show how to decentralize constrained efficient allocations that arise from enforcement constraints between sovereign nations. In a pure exchange economy these allocations can be decentralized with private agents acting competitively and taking as given government default decisions on foreign debt. In an economy with capital these allocations can be decentralized if the government can tax capital income as well as default on foreign debt. The tax on capital income is needed to make private agents internalize a subtle externality. The decisions of the government can arise as an equilibrium of a dynamic game between governments. ∗We thank Urban Jermann, Karsten Jeske, Dirk Krueger and David Levine as well as an anonymous referee and an associate editor for helpful comments. Both authors thank the NSF for research support. The views expressed herein are those of the authors and not necessarily those of the Federal Reserve Bank of Minneapolis or the Federal Reserve System. In this paper we study equilibria in economies in which there is limited ability to enforce credit arrangements between sovereign nations. In previous work (Kehoe and Perri [12]) we have discussed how this limited ability manifests itself in enforcement constraints which require that i
Modern macroeconomics in practice: how theory is shaping policy
Full text linkTheoretical advances in macroeconomics made in the last three decades have had a major influence on macroeconomic policy analysis. Moreover, over the last several decades, the United States and other countries have undertaken a variety of policy changes that are precisely what macroeconomic theory of the last 30 years suggests. The three key developments that have shaped macroeconomic policy analysis are the Lucas critique of policy evaluation due to Robert Lucas, the time inconsistency critique of discretionary policy due to Finn Kydland and Edward Prescott, and the development of quantitative dynamic stochastic general equilibrium models following Finn Kydland and Edward Prescott.Monetary policy ; Inflation targeting ; Taxation
Reply to Solow
Full text linkHere we reply to Robert Solow’s comment (forthcoming) on our work (Chari and Kehoe (2007)).Macroeconomics
If exchange rates are random walks, then almost everything we say about monetary policy is wrong
Full text linkThe key question asked by standard monetary models used for policy analysis is, How do changes in short-term interest rates affect the economy? All of the standard models imply that such changes in interest rates affect the economy by altering the conditional means of the macroeconomic aggregates and have no effect on the conditional variances of these aggregates. We argue that the data on exchange rates imply nearly the opposite: the observation that exchange rates are approximately random walks implies that fluctuations in interest rates are associated with nearly one-for-one changes in conditional variances and nearly no changes in conditional means. In this sense, standard monetary models capture essentially none of what is going on in the data. We thus argue that almost everything we say about monetary policy using these models is wrong.Foreign exchange ; Random walks (Mathematics) ; Monetary policy
Going Beyond Counting First Authors in Author Co-citation Analysis
Full text linkThe present study examines one of the fundamental aspects of author co-citation analysis (ACA) - the way co-citation
counts are defined. Co-citation counting provides the data on which all subsequent statistical analyses and mappings
are based, and we compare ACA results based on two different types of co-citation counting - the traditional type that
only counts the first one among a cited work's authors on the one hand and a non-traditional type that takes into
account the first 5 authors of a cited work on the other hand. Results indicate that the picture produced through this non-traditional author co-citation counting contains more coherent author groups and is therefore considerably clearer. However, this picture represents fewer specialties in the research field being studied than that produced through the traditional first-author co-citation counting when the same number of top-ranked authors is selected and analyzed. Reasons for these effects are discussed
Variations on the Author
Full text link“Variations on the Author” discusses two of Eduardo Coutinho’s recent films (Um Dia na Vida, from 2010, and Últimas Conversas, posthumously released in 2015) and their contribution to the general question of documentary authorship. The director’s filmography is characterized by a consistent yet self-effacing form of authorial self-inscription: Coutinho often features as an interviewer that rather than express opinions propels discourses; an interviewer that is good at listening. This mode of self-inscription characterizes him as an author who is not expressive but who is nonetheless markedly present on the screen. In Um Dia na Vida, however, Coutinho is completely absent form the image, while Últimas Conversas, on the contrary, includes a confessional prologue that moves the director from the margins to the center of his films. This article examines the ways in which these works stand out in the filmography of a director who offers new insights into the notion of cinematic authorship
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