New Research
Guvenen: Top Income Inequality in the 21st Century: Some Cautionary Notes
We revisit recent empirical evidence about the rise in top income inequality in the United States, drawing attention to key issues that we believe are critical for an informed discussion about changing inequality since 1980.
read moreOhanian: Who Defaults on Their Mortgage, and Why? Policy Implications for Reducing Mortgage Default
To design mortgage modification policies that successfully stem default and allow borrowers to keep their homes, policymakers need to understand why borrowers default. Is it because they’re truly unable to pay, or are they able to pay but have negative equity?
read moreArellano, Bai, Mihalache: Default Risk, Sectoral Reallocation and Persistent Recessions
Sovereign debt crises are associated with large and persistent declines in economic activity, disproportionately so for nontradable sectors.
read moreEggertsson, Mehrotra, Robbins: A Model of Secular Stagnation: Theory and Quantitative Evaluation
This paper formalizes and quantifies the secular stagnation hypothesis, defined as a persistently low or negative natural rate of interest leading to a chronically binding zero lower bound (ZLB).
read moreCrouzet and Mehrotra: Small and Large Firms over the Business Cycle
Drawing from confidential firm-level data of US manufacturing firms, we provide new evidence on the cyclicality of small and large firms. We show that the cyclicality of sales and investment declines with firm size
read morePerri and Stefanidis: Capital Requirements and Bailouts
We use balance sheet data and stock market data for the major U.S. banking institutions during and after the 2007-8 financial crisis to estimate the magnitude of the losses experienced by these institutions because of the crisis.
read moreGavazza, Mongey and Violante: Aggregate Recruiting Intensity
We develop an equilibrium model of firm dynamics with random search in the labor market where hiring firms exert recruiting effort by spending resources to fill vacancies faster.
read moreChari and Christiano: Financialization in Commodity Markets
The financialization view is that increased trading in commodity futures markets is associated with increases in the growth rate and volatility of commodity spot prices.
read moreHeathcote, Storesletten, Violante: Optimal Progressivity with Age-Dependent Taxation
Optimal Progressivity with Age-Dependent Taxation Jonathan Heathcote, Monetary Advisor Kjetil Storesletten, University of Oslo Giovanni L. Violante, Princeton University August 2017 | Federal Reserve Bank of Minneapolis Staff Report 551 This paper studies optimal...
read moreConesa and Kehoe: Productivity, Taxes, and Hours Worked in Spain: 1970-2015
In the early 1970s, hours worked per working-age person in Spain were higher than in the United States. Starting in 1975, however, hours worked in Spain fell by 40 percent.
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