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Discussion Paper
The replacement problem
We construct a vintage capital model of economic growth in which the decision to replace old technologies with new ones is modeled explicitly. Depreciation in this environment is an economic, not a physical concept. We describe the balanced growth paths and the transitional dynamics of this economy. We illustrate the importance of vintage capital by analyzing the response of the economy to fiscal policies designed to stimulate investment in new technologies.
Conference Paper
The welfare costs of moderate inflations
Conference Paper
The costs of losing monetary independence: the case of Mexico
Journal Article
Bouncing back from the great recession: the United States versus Europe
When the economic shocks that cause recessions in different economies have large common components, there may be lessons to be learned by studying how different economies respond.
Discussion Paper
Tax distortions in a neoclassical monetary economy
In this paper we use the common perspective provided by the neoclassical growth model to evaluate the size of the distortions associated with different monetary and fiscal policies designed to finance a given sequence of government expenditures. We construct an artificial monetary economy incorporating the cash-in-advance framework of Lucas and Stokey (1983), calibrate it to match important features of the U.S. economy, and simulate it to provide a quantitative assessment of the welfare costs associated with government policies involving different combinations of taxes on capital and labor ...
Conference Paper
Unanticipated money growth and the business cycle reconsidered
Conference Paper
Some welfare costs of monetary and fiscal policy