Search Results
Journal Article
Disaster zone
The economics of catastrophe risks are fundamentally different from those of risks covered by standard insurance contracts. Size alone is not necessarily the critical difference, nor is the sporadic and unpredictable nature of catastrophes. The key unconventional features needed to deal with the large, time-varying, asymmetric risks inherent in catastrophes are: - between-group trades across time, not just within-group, pay-as-you-go risk pooling; - in normal times, payments by the risk-prone group to the relatively safe group; - when catastrophe strikes, large payments to the risk-prone ...
Journal Article
As the nation's economy goes, so goes Minnesota's
Journal Article
Thoughts on the Fed's role in the payment system
This essay concerns how the Federal Reserve?s role as a payment services provider can best be aligned with its broad mission to foster the integrity, efficiency, and accessibility of the U.S. payments system. A recommended strategy involves specialization in providing services where the central bank has a comparative advantage?notably, services directly related to providing a comprehensive, secure system of accounts for interbank settlement and potentially some additional services justified by economies of scope. If markets for other payment services evolve as expected, the recommended ...
Journal Article
Credit risk data may help target foreclosure mitigation
What Ninth District areas are being especially hard hit by foreclosure?
Working Paper
The role of non-owner-occupied homes in the current housing and foreclosure cycle
Non-occupant homeowners differ from owner occupants in that they tend to have lower-risk credit characteristics, such as higher credit scores, but may also have weaker incentives to maintain mortgage payments when housing values fall. During the recent housing boom, the share of mortgage borrowing by non-occupant owners was relatively high in states where home values appreciated relatively rapidly. After the housing boom, foreclosures on non-occupant mortgages in several Midwestern and Northeastern states reflected primarily a high rate of foreclosure per mortgage, not a high volume of ...
Report
A case for post-purchase support programs as part of Minnesota's emerging markets homeownership initiative
The State of Minnesotas Emerging Markets Homeownership Initiative (EMHI) seeks to boost homeownership rates among Minnesotas emerging markets, defined as households of color, non-English speaking households, and households in which English is a second language. Many of the implementation strategies in the EMHI Business Plan address general barriers to homeownership and should increase the number of emerging market households that become first-time homeowners. EMHI doesnt stop there, however. It also recognizes the need to sustain homeownership after initial purchase, in keeping with growing ...
Report
Thoughts on the Fed's role in the payments system
2000 Annual Report Essay
Journal Article
Vector autoregression evidence on monetarism: another look at the robustness debate
This paper is a case study of the use of vector autoregression (VAR) models to test economic theories. It focuses on the work of Christopher A. Sims, who in 1980 found that relationships in economic data generated by a small VAR model were inconsistent with those implied by a simple form of monetarist theory. The paper describes the work of researchers who criticized Sims' results as not robust and Sims' response to these critics. The paper reexamines all of this work by estimating hundreds of variations of Sims' model. The paper concludes that both Sims and his critics are right: Sims' ...
Journal Article
Forecasting and modeling the U.S. economy in 1986-88