The demographic transition and the asset supply channel
This paper examines the macroeconomic consequences of a demographic transition in an environment where a producer's capital structure …
Security Creation Costs and Economic Development
We describe a tractable general equilibrium environment in which producers can transform cash-flows at a cost to create securities that …
Cash-flow Tranching and the Macroeconomy
The volume of cash-flow transformation activities has grown markedly over the past few decades as a result of technological …
Monetary Shocks and Sticky Wages in the U.S. Great Contraction: A Multi-Sector Approach
We quantify the role of contractionary monetary shocks and nominal wage rigidities in the U.S. Great Contraction. In contrast to …
Monetary Policy and Inequality
This Commentary examines the link between monetary policy and income and wealth inequality by reviewing the theoretical channels that …
The Cyclical Behavior of Equilibrium Unemployment and Vacancies Across OECD Countries
We show that the inability of a standardly calibrated labor search-and-matching model to account for observed levels of labor market …
Reassessing the Effects of Extending Unemployment Insurance Benefits
To deal with the high level of unemployment during the Great Recession, lawmakers extended the availability of unemployment benefits …
The Cyclicality of the Portuguese Labour Market: a Macroeconomic Perspective in the OECD Context
The portuguese labour market's cyclical fluctuations show little correlation with the aggregate business cycle as given by fluctuations …
Monetary Policy Tightening and Long-Term Interest Rates
The Federal Open Market Committee (FOMC) has maintained an accommodative monetary policy ever since the 2007 recession, and some fi …
Technology Shocks and Unemployment in the Last Recession
In the latest recession, unemployment rates in the United States increased at a faster pace than in the average OECD country. Since the …
Limited Enforcement, Financial Intermediation, and Economic Development: A Quantitative Assessment
We present a model of economic development where the importance of financial differences caused by limited enforcement can be measured. …
Is U.S. Federal Debt Too Large?
U.S. federal debt has grown to levels that have not been seen since the aftermath of the Second World War. Many economists argue there …
A Competitive Model of the Informal Sector
In developing nations, formal workers tend to be more experienced, more educated, and earn more than informal workers. These facts are …
The Great Depression in Canada and the United States: A Neoclassical Perspective
Canada suffered a major depression from 1929 to 1939. In terms of output it was similar to the Great Depression in the United States. …