Journal Article
Gauging Debt Levels in the U.S. and Eighth District
Schlagenhauf, Don E.; Eubanks, James D. (2018)
In this article, we look more closely at the recent developments in household debt accumulation nationally and in the Eighth District. One of the key findings is that household debt is increasing, but it has not yet reached the level observed in 2008 if adjustments are made for inflation. Also, the cause of the debt run-up in 2008 was mortgage debt. By contrast, consumer credit card debt and auto debt are the key drivers in the more recent increase.
The Regional Economist , Volume 26 , Issue 2

Working Paper
Exchange rates and international relative prices and quantities in equilibrium models with alternative preference specifications
Wrase, Jeffrey M.; Ozlu, Elvan; Schlagenhauf, Don E. (1996)
Dynamic open economy models with time-separable, deterministic utilities fail to account for observed dynamics of exchange rates and international relative prices and quantities. This paper examines the ability of extensions of existing open economy models to account for exchange rates, international relative prices, and international trade quantities. The extensions involve preferences with taste shocks and nontime-separable utilities in habit persistence form. Quantitative properties of calibrated versions of the models are examined in light of time series properties of key international ...
Working Papers , Paper 96-10

Discussion Paper
A monetary, open-economy model with capital mobility
Wrase, Jeffrey M.; Schlagenhauf, Don E. (1992)
This paper examines a two-country, monetary general-equilibrium model that includes a financial sector, capital mobility, and shocks to technologies and money-growth rates. Capital mobility allows agents in both countries to participate in rewards from relatively favorable shocks realized in either country. Currency exchange facilitates currency-intermediated international trade of consumption and capital goods. Qualitative and quantitative implications of the model for evolutions of variables are investigated. The quantitative analysis is performed by numerically solving and simulating the ...
Discussion Paper / Institute for Empirical Macroeconomics , Paper 67

Journal Article
Do Firms Switch Their Legal Form of Organization When Taxes Change?
Qi, Shi; Schlagenhauf, Don E. (2019-10-04)
Tax-law changes can cause firms to change their organizational structure.
Economic Synopses , Issue 23

Journal Article
Household Debt and the Great Recession
Garriga, Carlos; Schlagenhauf, Don E.; Noeth, Bryan J. (2017)
In the mid-2000s, household private debt reached a new level 1.2 times larger than personal income? before collapsing during the Great Recession. This paper uses microeconomic data to document the main changes in personal debt and explore the behavior of debt across generations over two periods: before and after the Great Recession. Special emphasis is placed on participation rates by category of debt (the extensive margin), volume borrowed (the intensive margin), and default behavior. Key findings include that between 1999 and 2013 the fraction of individuals with only unsecured (e.g., ...
Review , Volume 99 , Issue 2

Journal Article
On Corporate Income Taxes, Employment, and Wages
Qi, Shi; Schlagenhauf, Don E. (2018)
The passage of the Tax Cuts and Jobs Act of 2017 has resulted in debate on whether the decline in personal and corporate income tax rates will increase employment, income, and wages.
Economic Synopses , Issue 7 , Pages 1-3

Journal Article
Developments in Household Debt in Eighth District MSAs
Schlagenhauf, Don E.; Eubanks, James D. (2018)
Growth in household debt, a major contributing factor to the Great Recession, has led many to worry that a debt crisis is on the horizon. Although the levels of certain types of debt are rising in the MSAs of the Eighth Federal Reserve District, serious delinquency rates have not yet reached alarming levels.
Economic Synopses , Issue 19 , Pages 1-3

Journal Article
Recent trends in homeownership
Gavin, William T.; Garriga, Carlos; Schlagenhauf, Don E. (2006-09)
The homeownership rate began to trend upward in 1995 after years of being relatively constant, near 64 percent. This article describes recent changes in the share of U.S. housing that is owner-occupied and explores the reasons for the surprising rise over the past decade. Explanations that have been offered include demographics, low mortgage rates, changes in housing policy, and innovations in the mortgage financial market. Of all these explanations, the most plausible one is that innovations in the financial markets increased access to mortgage finance, mainly by reducing downpayment ...
Review , Volume 88 , Issue Sep , Pages 397-412

Discussion Paper
Liquidity and real activity in a simple open economy model
Wrase, Jeffrey M.; Schlagenhauf, Don E. (1992)
We examine nominal and real exchange rates, interest rates, prices, and evolutions of real variables in a two-country, monetary general-equilibrium model that includes a financial sector and shocks to technologies and money growth rates. Qualitative properties of the model are provided and moment predictions from a calibrated version of the model are compared to moments of time series drawn from actual economies. We focus on international monetary shock transmissions, and effects of monetary innovations on nominal and real exchange rates and nominal interest rates.
Discussion Paper / Institute for Empirical Macroeconomics , Paper 57

Journal Article
Measuring Levels of Debt in the Eighth District’s Key Metro Areas
Schlagenhauf, Don E.; Mather, Ryan (2018)
Debt growth and delinquency rate data do not seem to indicate that a severe debt problem may be brewing in these cities.
The Regional Economist , Volume 26 , Issue 4