2019 Richmond Fed Research Digest
Summaries of work by economists in the Bank’s Research Department published externally from June 1, 2018, through May 31, 2019
2020 Richmond Fed Research Digest
Summaries of work by economists in the Bank’s Research Department published externally from June 1, 2019, through May 31, 2020
Jargon Alert: Present Value
Revenue breakdown: In recent years, Uncle Sam's annual cut of GDP has declined significantly
Related links: https://www.richmondfed.org/-/media/richmondfedorg/publications/research/econ_focus/2012/q4/feature3_weblinks.cfm
The Role of Lower-Ranked Economics Ph.D. Programs
Using Inventories to Help Explain Post-1984 Business Cycles
Real business cycle (RBC) models have been highly successful at explaining business cycles that occurred before 1984. But since then, shifts in comovements and relative volatilities of key economic aggregates have challenged their preeminence. One possible refinement of the standard RBC model is to include multiple stages of production. This extension allows researchers to use inventory data to estimate the discount rate that firms use to assess future income streams. The results indicate that variations in the discount rate reflect financial frictions that have become significant drivers of ...
Putting the Beveridge Curve Back to Work
After the recession of 2007-09, the Beveridge curve seemed to shift significantly outward as the job-vacancy rate increased with no corresponding decrease in the unemployment rate. A new time-varying analysis of the Beveridge curve from the early 1950s through 2011 could lend support to the idea that skill mismatch due to technological change is the most likely driver of the curve's outward shifts, including its most recent movement. This analysis suggests that expansionary monetary policy has done little in recent years to reduce the unemployment rate.
Reaping the Benefits of the Reaper
Cyrus McCormick may not have invented the reaper, but he was the entrepreneur who made it successful