蝌蚪网

Front Matter

蝌蚪网 Journal: Macroeconomics, October 2022

News Shocks under Financial Frictions

By Christoph 骋枚谤迟锄, John D. Tsoukalas, and Francesco Zanetti

蝌蚪网 Journal: Macroeconomics, October 2022

We examine the dynamic effects of TFP news shocks in the context of frictions in financial markets. We document two new facts. First, a shock to future TFP generates a significant decline in credit spread indicators along with a robust improvement in cred...

Fiscal Rules and the Sovereign Default Premium

By Juan Carlos Hatchondo, Leonardo Martinez, and Francisco Roch

蝌蚪网 Journal: Macroeconomics, October 2022

We study fiscal rules using a sovereign default model. A debt-brake (spread-brake) rule imposes a ceiling on the fiscal deficit when the sovereign debt (spread) is above a threshold. For our benchmark calibration, similar gains can be achieved with the op...

Optimal Public Debt with Life Cycle Motives

By William B. Peterman and Erick Sager

蝌蚪网 Journal: Macroeconomics, October 2022

This paper determines optimal public debt in a life cycle model with incomplete markets that matches the empirically observed variation in consumption, labor, and savings. We find that public savings鈥攏ot public debt鈥攅qual to 168 percent of output is o...

Learning on the Job and the Cost of Business Cycles

By Karl Walentin and Andreas Westermark

蝌蚪网 Journal: Macroeconomics, October 2022

We show that business cycles reduce welfare through a decrease in the average level of employment in a labor market search model with learning on the job and skill loss during unemployment. Empirically, unemployment and the job-finding rate are negatively...

Asymmetric Effects of Monetary Policy in Regional Housing Markets

By Knut Are Aastveit and Andr茅 K. Anundsen

蝌蚪网 Journal: Macroeconomics, October 2022

The responsiveness of house prices to monetary policy shocks depends on the nature of the shock鈥攅xpansionary versus contractionary鈥攁nd on local housing supply elasticities. These findings are established using a panel of 263 US metropolitan areas. Exp...

Expectations-Driven Liquidity Traps: Implications for Monetary and Fiscal Policy

By Taisuke Nakata and Sebastian Schmidt

蝌蚪网 Journal: Macroeconomics, October 2022

We study optimal time-consistent monetary and fiscal policy in a New Keynesian model where occasional declines in agents' confidence give rise to persistent liquidity trap episodes. Insights from widely studied fundamental-driven liquidity traps are not a...

Age Structure and the Impact of Monetary Policy

By John V. Leahy and Aditi Thapar

蝌蚪网 Journal: Macroeconomics, October 2022

We exploit cross-sectional variation in the response of US states to an identified monetary policy shock to study how the impact of monetary policy varies with the age structure of the population. We find that the economy's response is weaker the greater ...

Distortions and the Structure of the World Economy

By Lorenzo Caliendo, Fernando Parro, and Aleh Tsyvinski

蝌蚪网 Journal: Macroeconomics, October 2022

We model the world economy as one system of endogenous input-output relationships subject to frictions and study how the world's input-output structure and world's GDP change due to changes in frictions. We derive a sufficient statistic to identify fricti...

Mind the Gap! Stylized Dynamic Facts and Structural Models

By Fabio Canova and Filippo Ferroni

蝌蚪网 Journal: Macroeconomics, October 2022

We study what happens to identified shocks and to dynamic responses when the data generating process features q disturbances but q1 < q variables are used in an empirical model. Identified shocks are linear combinations of current and past valu...

Short-Term Planning, Monetary Policy, and Macroeconomic Persistence

By Christopher Gust, Edward Herbst, and David 尝贸辫别锄-厂补濒颈诲辞

蝌蚪网 Journal: Macroeconomics, October 2022

We estimate a behavioral New Keynesian (NK) model in which households and firms plan over a finite horizon. The finite-horizon planning (FHP) model outperforms rational expectations versions of the NK model as well as other behavioral NK models. In the FH...

Monetary Policy and Liquidity Constraints: Evidence from the Euro Area

By Mattias Almgren, 闯辞蝉茅-贰濒铆补蝉 Gallegos, John Kramer, and Ricardo Lima

蝌蚪网 Journal: Macroeconomics, October 2022

We quantify the relationship between the response of output to monetary policy shocks and the share of liquidity-constrained households. We do so in the context of the euro area, using a Local Projections Instrumental Variables estimation. We construct an...

How Wage Announcements Affect Job Search鈥擜 Field Experiment

By 惭颈肠丑猫濒别 Belot, Philipp Kircher, and Paul Muller

蝌蚪网 Journal: Macroeconomics, October 2022

In a field experiment, we study how job seekers respond to posted wages by assigning wages randomly to pairs of otherwise similar vacancies in a large number of professions. Higher wages attract significantly more interest. Still, a nontrivial number of a...

Neo-Fisherian Policies and Liquidity Traps

By Florin O. Bilbiie

蝌蚪网 Journal: Macroeconomics, October 2022

Liquidity traps can be either fundamental or confidence-driven. In a simple, unified New Keynesian framework, I provide the analytical condition for the latter's prevalence: enough shock persistence and endogenous intertemporal amplification of future ("n...

Population Aging and Structural Transformation

By Javier Cravino, Andrei Levchenko, and Marco Rojas

蝌蚪网 Journal: Macroeconomics, October 2022

We quantify the role of population aging in the structural transformation process. Household-level data from the United States show that the fraction of expenditures devoted to services increases with household age. We use a shift-share decomposition and ...

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The Rise and Fall of Local Elections in China

By Monica Martinez-Bravo, Gerard Padr贸 i Miquel, Nancy Qian, and Yang Yao

蝌蚪网 Review, September 2022

We posit that autocrats introduce local elections when their bureaucratic capacity is low. Local elections exploit citizens' informational advantage in keeping local officials accountable, but they also weaken vertical control. As bureaucratic capacity ...