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Journal Article
Setting the interest rate
Journal Article
Mortgage refinancing
Journal Article
Inflation: the 2% solution
Journal Article
Shifting household assets in a bear market
Working Paper
An RBC model with growth: the role of human capital
Working Paper
Productivity shocks in a model with vintage capital and heterogeneous labor
We construct a vintage capital model in which worker skills lie along a continuum and workers can be paired with different vintages (as technology evolves) under a matching rule of "best worker with the best machine." Labor reallocation in response to technology shocks has two key implications for the wage premium. First, it limits both the magnitude and duration of change in the wage premium following a (permanent) embodied technology shock, so empirically plausible shocks do not lead to the kind of increases in the wage premium observed in the U.S. during the 1980s and early 1990s (though ...
Working Paper
Optimal disinflation paths when growth is endogenous
Journal Article
What's different about banks - still?
Working Paper
The role of capital service-life in a model with heterogenous labor and vintage capital
We examine how the economy responds to both disembodied and embodied technology shocks in a model with vintage capital. We focus on what happens when there is a change in the number of vintages of capital that are in use at any one time and on what happens when there is a change in the persistence of the shocks hitting the economy. The data suggest that these kinds of changes took place in the U.S. economy in the 1990s, when the pace of embodied technical progress appears to have accelerated. We find that embodied technology shocks lead to greater variability (of output, investment and labor ...
Journal Article
What's behind the low U.S. personal saving rate?