Journal Article
Inflation, growth, and financial intermediation
Jones, Larry E.; Chari, V. V.; Manuelli, Rodolfo E. (1996-05)
Review , Volume 78 , Issue May , Pages 41-58

Journal Article
The growth effects of monetary policy
Jones, Larry E.; Chari, V. V.; Manuelli, Rodolfo E. (1995-10)
This article investigates the relationship between inflation and output, in the data and in standard models. The article reports that empirical cross-country studies generally find a nonlinear, negative relationship between inflation and output, a relationship that standard models cannot come close to reproducing. The article demonstrates that the models' problem may be due to their standard narrow assumption that all money is held by the public for making transactions. When the models are adjusted to also assume that banks are required to hold money, the models do a much better job. The ...
Quarterly Review , Volume 19 , Issue Fall , Pages 18-32

Report
A reconsideration of the problem of social cost: free riders and monopolists
Jones, Larry E.; Chari, V. V. (1991)
We examine the validity of one version of the Coase Theorem: In any economy in which property rights are fully allocated, competition will lead to efficient allocations. This version of the theorem implies that the public goods problem can be solved by allocating property rights fully and letting markets do their work. We show that this mechanism is not likely to work well in economies with either pure public goods or global externalities. The reason is that the privatized economy turns out to be highly susceptible to strategic behavior in that the free-rider problem in public goods economies ...
Staff Report , Paper 142

Report
Growth and business cycles
Jones, Larry E.; Siu, Henry E.; Manuelli, Rodolfo E. (2000)
We present a class of convex endogenous growth models and analyze their performance in terms of both growth and business cycle criteria. The models we study have close analogs in the real business cycle literature. We interpret the exogenous growth rate of productivity as an endogenous growth rate of human capital. This perspective allows us to compare the strengths of the two classes of models. ; To highlight the mechanism that gives endogenous growth models the ability to improve upon their exogenous growth relatives, we study models that are symmetric in terms of human and physical capital ...
Staff Report , Paper 271

Report
Why are married women working so much?
Jones, Larry E.; Manuelli, Rodolfo E.; McGrattan, Ellen R. (2003)
We study the large observed changes in labor supply by married women in the United States over 1950-1990, a period when labor supply by single women has hardly changed at all. We investigate the effects of changes in the gender wage gap, technological improvements in the production of nonmarket goods and potential inferiority of these goods on understanding this change. We find that small decreases in the gender wage gap can explain simultaneously the significant increases in the average hours worked by married women and the relative constancy in the hours worked by single women, and single ...
Staff Report , Paper 317

Conference Paper
Inflation, growth, and financial intermediation
Jones, Larry E.; Chari, V. V.; Manuelli, Rodolfo E. (1996-05)
Proceedings , Volume 78 , Issue May , Pages 41-58

Report
Endogenous policy choice: the case of pollution and growth
Jones, Larry E.; Manuelli, Rodolfo E. (2000)
What determines the relationship between pollution and growth? Are the forces that explain the behavior over time of these quantities potentially useful to understand more generally the relationship between policies and growth? In this paper, we make a first attempt to analyze the equilibrium behavior of two quantities?the level of pollution and the level of income?in a setting in which societies choose, via voting, how much to regulate pollution. Our major finding is that, consistent with the evidence, the relationship between pollution and growth need not be monotone and that the precise ...
Staff Report , Paper 276

Working Paper
Efficiency with endogenous population growth
Golosov, Mikhail; Jones, Larry E.; Tertilt, Michele (2004)
In this paper, we generalize the notion of Pareto-efficiency to make it applicable to environments with endogenous populations. Two efficiency concepts are proposed, P-efficiency and A-efficiency. The two concepts differ in how they treat people who are not born. We show how these concepts relate to the notion of Pareto-efficiency when fertility is exogenous. We then prove versions of the first welfare theorem assuming that decision making is efficient within the dynasty. Finally, we give two sets of sufficient conditions for noncooperative equilibria of family decision problems to be ...
Working Papers , Paper 630

Report
Labor contracts in a model of imperfect competition
Jones, Larry E.; Chari, V. V.; Manuelli, Rodolfo E. (1989)
We propose a definition of involuntary unemployment which differs from that traditionally used in implicit labor contract theory. We say that a worker is involuntarily unemployed if the marginal wage implied by the optimal contract exceeds the marginal rate of substitution between leisure and consumption. We construct a model where risk-neutral firms have monopoly power and show that such monopoly power is necessary for involuntary unemployment to arise in the optimal contract. We numerically compute examples and show that such unemployment occurs for a wide range of parameter values.
Staff Report , Paper 117

Report
Fertility and Social Security
Boldrin, Michele; Jones, Larry E.; De Nardi, Mariacristina (2005)
The data show that an increase in government provided old-age pensions is strongly correlated with a reduction in fertility. What type of model is consistent with this finding? We explore this question using two models of fertility: one by Barro and Becker (1989), and one inspired by Caldwell (1978, 1982) and developed by Boldrin and Jones (2002). In Barro and Becker's model parents have children because they perceive their children's lives as a continuation of their own. In Boldrin and Jones' framework parents procreate because children care about their parents' utility, and thus provide ...
Staff Report , Paper 359