Search Results

(refine search)

SORT BY: PREVIOUS / NEXT

All:
Title:
Author:
Abstract:
Keywords:

+ Add Search Parameter

Working Paper
Search Complementarities, Aggregate Fluctuations, and Fiscal Policy
Yu, Yang; Fernández-Villaverde, Jesús; Zanetti, Francesco; Mandelman, Federico S. (2019-05-01)
We develop a quantitative business cycle model with search complementarities in the inter-firm matching process that entails a multiplicity of equilibria. An active equilibrium with strong joint venture formation, large output, and low unemployment coexists with a passive equilibrium with low joint venture formation, low output, and high unemployment. {{p}} Changes in fundamentals move the system between the two equilibria, generating large and persistent business cycle fluctuations. The volatility of shocks is important for the selection and duration of each equilibrium. Sufficiently adverse ...
FRB Atlanta Working Paper , Paper 2019-9

Working Paper
The "Matthew Effect" and Market Concentration: Search Complementarities and Monopsony Power
Yu, Yang; Mandelman, Federico S.; Zanetti, Francesco; Fernández-Villaverde, Jesús (2021-01-15)
This paper develops a dynamic general equilibrium model with heterogeneous firms that face search complementarities in the formation of vendor contracts. Search complementarities amplify small differences in productivity among firms. Market concentration fosters monopsony power in the labor market, magnifying profits and further enhancing the output share of high-productivity firms. The combination of search complementarities and monopsony power induce a strong "Matthew effect" that endogenously generates superstar firms out of uniform idiosyncratic productivity distributions. Reductions in ...
FRB Atlanta Working Paper , Paper 2021-4

Working Paper
Beliefs, Aggregate Risk, and the U.S. Housing Boom
Jacobson, Margaret M. (2022-09-23)
Endogenously optimistic beliefs about future house prices can account for the path and standard deviation of house prices in the U.S. housing boom of the 2000s. In a general equilibrium model with incomplete markets and aggregate risk, agents form beliefs about future house prices in response to shocks to fundamentals. In an income expansion with looser credit conditions, agents are more likely to underpredict house prices and revise up their beliefs. Matching the standard deviation and steady rise in house prices results in homeownership becoming less affordable later in the boom as well as ...
Finance and Economics Discussion Series , Paper 2022-061

Working Paper
What Do LLMs Want?
Cook, Thomas R.; Kazinnik, Sophia; Modig, Zach; Palmer, Nathan M. (2025-11-25)
Large language models (LLMs) are now used for economic reasoning, but their implicit "preferences” are poorly understood. We study LLM preferences as revealed by their choices in simple allocation games and a job-search setting. Most models favor equal splits in dictator-style allocation games, consistent with inequality aversion. Structural estimates recover Fehr–Schmidt parameters that indicate inequality aversion is stronger than in similar experiments with human participants. However, we find these preferences are malleable: reframing (e.g., masking social context) and learned ...
Research Working Paper , Paper RWP 25-19

Working Paper
Trends and cycles in small open economies: making the case for a general equilibrium approach
Chen, Kan; Crucini, Mario J. (2016-08-12)
Economic research into the causes of business cycles in small open economies is almost always undertaken using a partial equilibrium model. This approach is characterized by two key assumptions. The first is that the world interest rate is unaffected by economic developments in the small open economy, an exogeneity assumption. The second assumption is that this exogenous interest rate combined with domestic productivity is sufficient to describe equilibrium choices. We demonstrate the failure of the second assumption by contrasting general and partial equilibrium approaches to the study of a ...
Globalization Institute Working Papers , Paper 279

Working Paper
Beliefs, Aggregate Risk, and the U.S. Housing Boom
Jacobson, Margaret M. (2025-01-31)
Endogenously optimistic beliefs about future house prices can account for the increase, time-path, and volatility of house prices in the U.S. housing boom of the 2000s without shocks to housing preferences. In a general equilibrium model with incomplete markets and aggregate risk, heterogeneous agents endogenously form beliefs about future house prices in response to shocks to fundamentals. When fundamentals like credit conditions loosen, agents can only partially revise up their beliefs, resulting in increasingly optimistic beliefs that are consistent with both novel and existing empirical ...
Finance and Economics Discussion Series , Paper 2022-061r1

show more (28)

PREVIOUS / NEXT

Fed in Print

Search Results

FILTER BY year

FILTER BY Bank

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

FILTER BY Jel Classification

FILTER BY Keywords