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Bank:Federal Reserve Bank of Philadelphia 

Journal Article
How do businesses recruit?

Most economic theories of hiring and job seeking assume that businesses post vacancies when they demand more labor. Workers then apply for the job, and the most qualified candidate is hired. However, as those who have ever recruited or applied for a job know, the recruiting process is considerably more complex. In this article, Jason Faberman discusses some recent research on how employers recruit. It shows that the extent to which a business uses various recruiting channels depends on the characteristics of the employer, how fast the employer is growing (or contracting), and the overall ...
Business Review , Issue Q4 , Pages 9-17

Working Paper
An empirical investigation of money demand in the cash-in-advance model framework

Working Papers , Paper 92-16

Working Paper
Durable financial regulation: monitoring financial instruments as a counterpart to regulating financial institutions

Superseded by Working Paper 13-2 ; This paper sets forth a discussion framework for the information requirements of systemic financial regulation. It specifically proposes a large macro-micro database for the U.S. based on an extended version of the Flow of Funds. The author argues that such a database would have been of material value to U.S. regulators in ameliorating the recent financial crisis and will be of aid in understanding the potential vulnerabilities of an innovative financial system in the future. The author also argues that the data should -- under strict confidentiality ...
Working Papers , Paper 10-22

Working Paper
Subprime mortgages and the housing bubble

This paper explores the link between the house-price expectations of mortgage lenders and the extent of subprime lending. It argues that bubble conditions in the housing market are likely to spur subprime lending, with favorable price expectations easing the default concerns of lenders and thus increasing their willingness to extend loans to risky borrowers. Since the demand created by subprime lending feeds back onto house prices, such lending also helps to fuel an emerging housing bubble. The paper, however, focuses on the reverse causal linkage, where subprime lending is a consequence ...
Working Papers , Paper 11-12

Working Paper
Regional resilience

In this paper, I study long-run population changes across U.S. metropolitan areas. First, I argue that changes over a long period of time in the geographic distribution of population can be informative about the so-called resilience" of regions. Using the censuses of population from1790 to 2010, I find that persistent declines, lasting two decades or more, are somewhat rare among metropolitan areas in U.S. history, though more common recently. Incorporating data on historical factors, I find that metropolitan areas that have experienced extended periods of weak population growth tend to be ...
Working Papers , Paper 13-01

Journal Article
Changes in the use of electronic means of payment: 1995-2010

This article updates the information published in an article by Loretta Mester in the March/April 2000 Business Review and last updated in the Third Quarter 2009 issue.
Business Review , Issue Q3 , Pages 25-36

Working Paper
Maturity, indebtedness, and default risk

In this paper, the authors advance the theory and computation of Eaton-Gersovitz style models of sovereign debt by incorporating long-term debt and proving the existence of an equilibrium price function with the property that the interest rate on debt is increasing in the amount borrowed and implementing a novel method of computing the equilibrium accurately. Using Argentina as a test case, they show that incorporating long-term debt allows the model to match the average external debt-to-output ratio, average spread on external debt, the standard deviation of spreads and simultaneously ...
Working Papers , Paper 11-33

Working Paper
Inflation and real activity with firm-level productivity shocks

In the last ten years there has been an explosion of empirical work examining price setting behavior at the micro level. The work has in turn challenged existing macro models that attempt to explain monetary nonneutrality, because these models are generally at odds with much of the micro price data. In response, economists have developed a second generation of sticky-price models that are state dependent and that include both fixed costs of price adjustment and idiosyncratic shocks. Nonetheless, some ambiguity remains about the extent of monetary nonneutrality that can be attributed to costly ...
Working Papers , Paper 13-35

Working Paper
Expectations and economic fluctuations: an analysis using survey data

Using survey-based measures of future U.S. economic activity from the Livingston Survey and the Survey of Professional Forecasters, the authors study how changes in expectations, and their interaction with monetary policy, contribute to fluctuations in macroeconomic aggregates. They find that changes in expected future economic activity are a quantitatively important driver of economic fluctuations: a perception that good times are ahead typically leads to a significant rise in current measures of economic activity and inflation. The authors also find that the short-term interest rate rises ...
Working Papers , Paper 10-6

Speech
Welcoming remarks: Camden Promise Zone Initiative meeting

President Patrick T. Harker provides opening remarks at the Community Reinvestment Act and the White House Promise Zone Initiative: Camden Promise Zone Initiative meeting, organized by the Philadelphia Fed?s Community Development Studies & Education Department, the FDIC, the City of Camden, the Camden Redevelopment Agency, and the U.S. Department of Housing and Urban Development. He discusses how locally developed plans can leverage private-sector investments to promote economic growth.
Speech , Paper 119

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