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Showing results 1 to 10 of approximately 43.
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Journal Article
Bank Lending During Recessions
Tightening of lending standards can account for part of the negative loan growth during the 2007-09 recession.
Working Paper
Improving Sovereign Debt Restructurings
The wave of sovereign defaults in the early 1980s and the string of debt crises in subsequent decades have fostered proposals involving policy interventions in sovereign debt restructurings. The global financial crisis and the recent global pandemic have further reignited this discussion among academics and policymakers. A key question about these policy proposals for debt restructurings that has proved hard to handle is how they influence the behavior of creditors and debtors. We address this challenge by evaluating policy proposals in a quantitative sovereign default model that ...
Working Paper
Sovereign Debt Restructurings
Sovereign debt crises involve debt restructurings characterized by a mix of face-value haircuts and maturity extensions. The prevalence of maturity extensions has been hard to reconcile with economic theory. We develop a model of endogenous debt restructuring that captures key facts of sovereign debt and restructuring episodes. While debt dilution pushes for negative maturity extensions, three factors are important in overcoming the effects of dilution and generating maturity extensions upon restructurings: income recovery after default, credit exclusion after restructuring, and regulatory ...
Journal Article
Labor Market Polarization: How Does the District Compare with the Nation?
See why jobs in the District, nation are increasingly becoming high-skill or low-skill. The decline of middle-skill jobs may be widening income inequality.
Reading the Labor Market in Real Time
A coincident index developed by one of our economists can help gauge the pace of the recovery and obtain real-time information on the state of the labor market.
Revisiting Wage Growth in 2023
An analysis finds that nominal wage growth peaked in 2022. In 2023, wages increased but at a slower rate, and growth has yet to return to pre-pandemic levels.
Retirements Surge for Older Workers during COVID-19
Though retirement decisions vary by different age groups, the COVID-19 pandemic increased retirement rates for those age 66 and older.
Journal Article
A Regional Look at U.S. International Trade
Economic activity at the state level varies greatly across U.S. regions, with different states specializing in the production of particular goods and services. This heterogeneity in activity informs the geographic distribution of U.S. imports and exports. Using U.S. Census Bureau foreign trade statistics, the authors examine the distribution of U.S. international trade at the state level, controlling for commodities and major trading partners. They find that trade activity varies greatly from state to state and identify two factors affecting this pattern?proximity to a trading partner and ...
Working Paper
Improving Sovereign Debt Restructurings
The wave of sovereign defaults in the early 1980s and the string of debt crises in subsequent decades have fostered proposals involving policy interventions in sovereign debt restructurings. The global financial crisis and the recent global pandemic have further reignited this discussion among academics and policymakers. A key question about these policy proposals for debt restructurings that has proved hard to handle is how they influence the behavior of creditors and debtors. We address this challenge by evaluating policyproposals in a quantitative sovereign default model that incorporates ...
Journal Article
Fiscal Federalism and Optimal Income Taxes
This paper studies how local policies?specifically, taxes on income with redistributive goals?affect the migration decisions of individuals and, in turn, how these migration decisions affect local and economy-wide tax and redistribution policies. The author develops a model of optimal taxation for a federal system of governments in the tradition of Mirrlees (1971), where taxes can be fully nonlinear but informational asymmetries prevent the equalization of well being across workers due to informational rents. This article extends the large literature on federalism and tax competition by ...