Search Results

(refine search)

SORT BY: PREVIOUS / NEXT

All:
Title:
Author:
Abstract:
Keywords:

+ Add Search Parameter

Journal Article
Transmission of Sovereign Risk to Bank Lending
Başkaya, Yusuf Soner; Hardy, Bryan; Kalemli-Özcan, Ṣebnem; Yue, Vivian Z. (2023-02-27)
Banks hold a significant exposure to their own sovereigns. An increase in sovereign risk may hurt banks' balance sheets, causing a decrease in lending and a decline in economic activity. We quantify the transmission of sovereign risk to bank lending and provide new evidence about the effect of sovereign risk on economic outcomes. We consider the 1999 Marmara earthquake in Turkey as an exogenous shock leading to an increase in Turkey's default risk. Our empirical estimates show that, for banks holding a higher amount of government securities, the exogenous change in sovereign default risk ...
Policy Hub , Volume 2023 , Issue 2

Working Paper
Liquidity Premia, Price-Rent Dynamics, and Business Cycles
Miao, Jianjun; Wang, Pengfei; Zha, Tao (2014-08-01)
n the U.S. economy during the past 25 years, house prices exhibit fluctuations considerably larger than house rents, and these large fluctuations tend to move together with business cycles. We build a simple theoretical model to characterize these observations by showing the tight connection between price-rent fluctuation and the liquidity constraint faced by productive firms. After developing economic intuition for this result, we estimate a medium-scale dynamic general equilibrium model to assess the empirical importance of the role the price-rent fluctuation plays in the business cycle. ...
FRB Atlanta Working Paper , Paper 2014-15

Working Paper
Financial Frictions, Financial Shocks, and Aggregate Volatility
Fuentes-Albero, Cristina (2018-08-07)
The Great Moderation in the U.S. economy was accompanied by a widespread increase in the volatility of financial variables. We explore the sources of the divergent patterns in volatilities by estimating a model with time-varying financial rigidities subject to structural breaks in the size of the exogenous processes and two institutional characteristics: the coefficients in the monetary policy rule and the severity of the financial rigidity at the steady state. To do so, we generalize the estimation methodology developed by Curdia and Finocchiaro (2013). Institutional changes are key in ...
Finance and Economics Discussion Series , Paper 2018-054

Working Paper
The Self-Employment Option in Rigid Labor Markets: An Empirical Investigation
Garcia-Cabo, Joaquin; Madera, Rocio (2019-11-14)
This paper studies selection into and returns to self-employment in labor markets with stringent employment protection. Using Spanish administrative panel data, we characterize self-employment dynamics in the presence of rigidities that affect workers? outside options. We document the negative selection into self-employment when workers enter from unemployment, and the pro-cyclicality of the decision. We identify career heterogeneity in the data and estimate a rich life-cycle income process. The self-employed face shocks with smaller variances but lower returns compared to fixed-term ...
International Finance Discussion Papers , Paper 1264

Working Paper
Minimum Wage Increases and Vacancies
Kudlyak, Marianna; Tasci, Murat; Tuzemen, Didem (2022-04-21)
Using a unique data set and a novel identification strategy, we estimate the effect of minimum wage increases on job vacancy postings. Utilizing occupation-specific county-level vacancy data from the Conference Board’s Help Wanted Online for 2005-2018, we find that state-level minimum wage increases lead to substantial declines in existing and new vacancy postings in occupations with a larger share of workers who earn close to the prevailing minimum wage. We estimate that a 10 percent increase in the state-level effective minimum wage reduces vacancies by 2.4 percent in the same quarter, ...
Working Paper Series , Paper 2022-10

Working Paper
Modeling Labor Markets in Macroeconomics: Search and Matching
Lubik, Thomas A.; Krause, Michael U. (2014-12-15)
We present and discuss the simple search and matching model of the labor market against the background of developments in modern macroeconomics. We derive a simple representation of the model in a general equilibrium context and how the model can be used to analyze various policy issues in labor markets and monetary policy.
Working Paper , Paper 14-19

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
A State-Level Analysis of Okun’s Law
Owyang, Michael T.; Sinclair, Tara M.; Hernandez-Murillo, Ruben; Guisinger, Amy Y. (2015-10-21)
Okun?s law is an empirical relationship that measures the correlation between the deviation of the unemployment rate from its natural rate and the deviation of output growth from its potential. In this paper, we estimate Okun?s coefficients for each U.S. state and examine the potential factors that explain the heterogeneity of the estimated Okun relationships. We find that indicators of more flexible labor markets (higher levels of education achievement in the population, lower rate of unionization, and a higher share of nonmanufacturing employment) are important determinants of the ...
Working Papers (Old Series) , Paper 1523

Working Paper
Trends and cycles in small open economies: making the case for a general equilibrium approach
Chen, Kan; Crucini, Mario J. (2014-11-01)
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 217

Working Paper
The Optimal Inflation Rate with Discount Factor Heterogeneity
Lepetit, Antoine (2018-12)
This paper shows that deviations from long-run price stability are optimal in the presence of price stickiness whenever profit and utility flows are discounted at a different rate. In that case, a monetary authority acting under commitment will choose a path for the inflation rate that ends with a non-zero value. Such a property is relevant in a wide range of macroeconomic environments. I first illustrate this by studying optimal monetary policy in a New Keynesian model with a perpetual youth structure. In this setting, profit flows are discounted more heavily than utility flows and the ...
Finance and Economics Discussion Series , Paper 2018-086

show more (1)

show more (248)

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