the origin of the aggregate volatility reduction. We show that states with relatively high concentrations in the durable-goods …

expected inflation, which in turn, reduces the real interest rate and leads to an increase in private consumption. This paper …

frictions giving rise to money as a medium of exchange are explicitly modeled. The framework is a three period OLG model where … production efficiency in the search market. In the absence of record-keeping, the government uses flat money as a substitute for … distortionary taxation of money may be needed as part of the optimal policy even if lump-sum taxes are available. …

We study the effects of money (anticipated inflation) on capital formation. Previous papers on this topic adopt reduced …-form approaches, putting money in the utility function or imposing cash in advance, but use otherwise frictionless models. We follow a … literature that is more explicit about the frictions making money essential. This introduces several new elements, including a …

This paper (i) estimates the local effects of government stimulus spending on labor market outcomes and (ii) shows how … reinforces the importance of the intensive labor margin. …

U.S. counties into local labor markets, each of which we further partition into two subregions. We then compare … differential labor market outcomes and Recovery Act spending at the regional and subregional levels using instrumental variables …