Applying Asset Pricing Theory to Calibrate the Price of Climate Risk -- by...
Pricing greenhouse gas emissions is a risk management problem. It involves making trade-offs between consumption today and unknown and potentially catastrophic damages in the (distant) future. The...
View ArticlePublic Debt as Private Liquidity: Optimal Policy -- by George-Marios...
We study the Ramsey policy problem in an economy in which public debt contributes to the supply of assets that private agents can use as buffer stock and collateral, or as a vehicle of liquidity....
View ArticleCommodities for the Long Run -- by Ari Levine, Yao Hua Ooi, Matthew Richardson
This paper analyzes a novel data set of commodity futures prices over a long sample period starting in 1877, which allows us to shed new light on several important and controversial questions. We...
View ArticleThe Effect of E-Cigarette Minimum Legal Sale Age Laws on Traditional...
We use United States birth record data to estimate the effect of e-cigarette minimum legal sale age laws on cigarette use and birth outcomes for pregnant teenagers. While these laws may have reduced...
View ArticleUpward Mobility and Discrimination: The Case of Asian Americans -- by...
Asian Americans are the only non-white US racial group to experience long-term, institutional discrimination yet today exhibit high income. I reexamine this puzzle. I focus on California, where most...
View ArticleJoint Statement On U.S.-EU Negotiations For A Bilateral Agreement On...
The United States and European Union today released the following joint statement on negotiations for a bilateral agreement on insurance and reinsurance measures:read more...
View ArticleShort-Run Effects of Lower Productivity Growth. A Twist on the Secular...
Since 2010, U.S. GDP growth has been anemic, averaging 2.1% a year, and this despite interest rates very close to zero. Historically, one would have expected such low sustained rates to lead to much...
View ArticleBeyond the Classroom: The Implications of School Vouchers for Church Finances...
Governments have used vouchers to spend billions of dollars on private education; much of this spending has gone to religiously-affiliated schools. We explore the possibility that vouchers could create...
View ArticleMonetary Policy and the Predictability of Nominal Exchange Rates -- by Martin...
This paper documents two facts about the behavior of floating exchange rates in countries where monetary policy follows a Taylor-type rule. First, the current real exchange rate is highly negatively...
View ArticleCircumventing the Zero Lower Bound with Monetary Policy Rules Based on Money...
Discussions of monetary policy rules after the 2007-2009 recession highlight the potential ineffectiveness of a central bank's actions when the short-term interest rate under its control is limited by...
View ArticleThe End of Alchemy: A Review Essay -- by Roger E.A. Farmer
I review The End of Alchemy by Mervyn King, published by W.W. Norton and Company in 2016. I discuss King's proposed regulatory reform, the 'Pawn Broker for All Seasons' (PFAS) and I compare it to an...
View ArticleThe Impact of Climate Change Skepticism on Adaptation in a Market Economy --...
Climate change will increase the risk of temperature extremes. Induced innovation could offset some of this threat. This paper explores the demand and supply for climate adaptation innovation in a...
View ArticleThe Macroeconomic Effects of Government Asset Purchases: Evidence from...
We document the portfolio activity of federal housing agencies and provide evidence on its impact on mortgage markets and the economy. Through a narrative analysis, we identify historical policy...
View ArticleUnderstanding the Economic Impact of the H-1B Program on the U.S. -- by John...
Over the 1990s, the share of foreigners entering the US high-skill workforce grew rapidly. This migration potentially had a significant effect on US workers, consumers and firms. To study these...
View ArticleCompany Stock Reactions to the 2016 Election Shock: Trump, Taxes and Trade --...
The election of Donald J. Trump as the 45th President of the United States of America on 11/8/2016 came as a surprise. Markets responded swiftly and decisively. This note investigates both the initial...
View ArticleTight Money-Tight Credit: Coordination Failure in the Conduct of Monetary and...
Quantitative analysis of a New Keynesian model with the Bernanke-Gertler accelerator and risk shocks shows that violations of Tinbergen's Rule and strategic interaction between policymaking authorities...
View ArticleThe Distribution of Public Spending for Health Care in the United States on...
U.S. health care spending in 2012 totaled $2.8 trillion or 17.2 percent of gross domestic product. Given the magnitude of health care spending, the large public sector role in health care, and the...
View ArticleInternational Spillovers and Local Credit Cycles -- by Yusuf Soner Baskaya,...
We show that capital inflows are important drivers of domestic credit cycles using a firm-bank-loan level dataset for a representative emerging market. Instrumenting inflows by changes in global risk...
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