New Research

Fogli and Veldkamp: Germs, Social Networks, and Growth

Germs, Social Networks, and Growth Alessandra Fogli, Assistant Director of Inequality Research and Monetary Advisor Laura Veldkamp, Columbia Graduate School of Business November 2018 | Federal Reserve Bank of Minneapolis Staff Report 572 Does...

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Staff Report 571: Optimal Capital Taxation Revisited

Optimal Capital Taxation Revisited V. V. Chari, Consultant Juan Pablo Nicolini, Senior Research Economist Pedro Teles September 2018 | Federal Reserve Bank of Minneapolis Staff Report 571 We revisit the question of how capital should be taxed....

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Cai and Heathcote: College Tuition and Income Inequality

College Tuition and Income Inequality Zhifeng Cai Jonathan Heathcote, Monetary Advisor July 2018 | Federal Reserve Bank of Minneapolis Staff Report 569 This paper evaluates the role of rising income inequality in explaining observed growth in...

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Benjamin and Wright: Deconstructing Delays in Sovereign Debt Restructuring

Negotiations to restructure sovereign debt are time consuming, taking almost a decade on average to resolve. In this paper, we analyze a class of widely used complete information models of delays in sovereign debt restructuring and show that, despite superficial similarities, there are major differences across models in the driving force for equilibrium delay, the circumstances in which delay occurs, and the efficiency of the debt restructuring process.

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Chari, Nicolini, Teles: Optimal Capital Taxation Revisited

We revisit the question of how capital should be taxed, arguing that if governments are allowed to use the kinds of tax instruments widely used in practice, for preferences that are standard in the macroeconomic literature, the optimal approach is to never distort capital accumulation.

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