Working Paper
Markup Cyclicality: A Tale of Two Models
Hong, Sungki (2017-09-21)
Many models in the business cycle literature generate counter-cyclical price markups. This paper examines if the prominent models in the literature are consistent with the empirical findings of micro-level markup behavior in Hong (2016). In particular, I test the markup behavior of the following two models: (i) an oligopolistic competition model, and (ii) a New Keynesian model with heterogeneous price stickiness. First, I explore the Atkeson and Burstein (2008) model of oligopolistic competition, in which markups are an increasing function of firm market shares. Coupled with an exogenous ...
Working Papers , Paper 2017-34

Journal Article
Industry Connectivity: A Case Study of the Construction Industry
Hong, Sungki; Shell, Hannah (2018)
Industries most related to the construction industry were hit harder by the Great Recession.
Economic Synopses , Issue 33 , Pages 1-2

Working Paper
Capital Gains Taxation and Investment Dynamics
Hong, Sungki; Moon, Terry S. (2018-10-31)
This paper quanti?es the long-run effects of reducing capital gains taxes on aggregate investment. We develop a dynamic general equilibrium model with heterogeneous ?rms, which face discrete capital gains tax rates based on their ?rm size. We calibrate our model by targeting relevant micro moments as well as the difference-in-differences estimate of the capital elasticity based on the institutional setting and a policy reform in Korea. We ?nd that the ?rm-size reform that reduced the capital gains tax rates from 24 percent to 10 percent for the affected ?rms increased aggregate investment by ...
Working Papers , Paper 2018-31

What Are the Fed’s Dollar Swap Lines and FIMA Repos, and Why Do They Matter?
Werner, Devin; Hong, Sungki (2020-10-08)
Making it easier for central banks to access U.S. dollars helps calm exchange rate volatility and allow markets and credit lines to operate smoothly.
On the Economy

Journal Article
Moving In, Moving Out: The Migration Pattern of the Eighth District
Hong, Sungki; Shell, Hannah (2019)
Education and income differed between those leaving and those entering the District states from 2013-2017.
The Regional Economist , Volume 27 , Issue 3

Did the Fed’s Dollar Swap Lines Work?
Werner, Devin; Hong, Sungki (2020-11-24)
In March, the Federal Reserve took steps to increase the supply of dollars to foreign markets to ensure liquidity and lessen volatility. Did the policies work?
On the Economy

Journal Article
How Important Are Production Networks to the U.S. Economy?
Hong, Sungki; Sun, Qiuhan; Shell, Hannah (2018)
As manufacturing grows more sophisticated, industries become more interconnected through production networks.
The Regional Economist , Volume 26 , Issue 4

Journal Article
Firms’ Price-Markup Dynamics During the Great Recession
Hong, Sungki (2018)
The customer capital model is consistent with Great Recession markup dynamics.
Economic Synopses , Issue 20 , Pages 1-2

Journal Article
The Global Decline of the Natural Rate of Interest and Implications for Monetary Policy
Hong, Sungki; Shell, Hannah (2019-02-01)
A low natural rate of interest in normal times may call for unconventional policy in recessions.
Economic Synopses , Issue 4

Journal Article
60% of District's Jobs Could Face Automation in the Next 20 Years
Hong, Sungki; Shell, Hannah (2018)
Jobs in the St. Louis Fed?s District face a higher risk of automation than do jobs nation-wide. Smaller MSAs in the District will face bigger impact.
The Regional Economist , Volume 26 , Issue 3