Similar Search Results

A General Formula for the Optimal Level of Social Insurance

Chetty, Raj - 2005

In an influential paper, Baily (1978) showed that the optimal level of unemployment insurance (UI) in a stylized static model depends on only three parameters: risk aversion, the consumption-smoothing benefit of UI, and the elasticity of unemployment durations with respect to the benefit rate....

Persistent link: https://www.econbiz.de/10012467297

Reconstructing Macroeconomic Theory to Manage Economic Policy

Stiglitz, Joseph E. - 2014

asymmetric information, game theory, and behavioral economics …The paper argues that any theory of deep downturns has to answer these questions: What is the source of the …

Persistent link: https://www.econbiz.de/10012458148

Rating Agencies

Cole, Harold L. - 2014

For decades credit rating agencies were viewed as trusted arbiters of creditworthiness and their ratings as important tools for managing risk. The common narrative is that the value of ratings was compromised by the evolution of the industry to a form where issuers pay for ratings. In this paper...

Persistent link: https://www.econbiz.de/10012458692

Climate Change Policy : What Do the Models Tell Us?

Pindyck, Robert S. - 2013

Very little. A plethora of integrated assessment models (IAMs) have been constructed and used to estimate the social cost of carbon (SCC) and evaluate alternative abatement policies. These models have crucial flaws that make them close to useless as tools for policy analysis: certain inputs...

Persistent link: https://www.econbiz.de/10012459418

The Perils of the Learning Model For Modeling Endogenous Technological Change

Nordhaus, William D. - 2009

Learning or experience curves are widely used to estimate cost functions in manufacturing modeling. They have recently been introduced in policy models of energy and global warming economics to make the process of technological change endogenous. It is not widely appreciated that this is a...

Persistent link: https://www.econbiz.de/10012464011

New Keynesian Models : Not Yet Useful for Policy Analysis

Chari, V.V. - 2008

Macroeconomists have largely converged on method, model design, reduced-form shocks, and principles of policy advice. Our main disagreements today are about implementing the methodology. Some think New Keynesian models are ready to be used for quarter-to-quarter quantitative policy advice; we do...

Persistent link: https://www.econbiz.de/10012464338

How Structural Are Structural Parameters?

Fernández-Villaverde, Jesús - 2007

This paper studies how stable over time are the so-called "structural parameters" of dynamic stochastic general equilibrium (DSGE) models. To answer this question, we estimate a medium-scale DSGE model with real and nominal rigidities using U.S. data. In our model, we allow for parameter...

Persistent link: https://www.econbiz.de/10012465487

Optimal Executive Compensation vs. Managerial Power : A Review of Lucian Bebchuk and Jesse Fried's "Pay without Performance

Weisbach, Michael S. - 2006

This essay reviews Bebchuk and Fried's "Pay without Performance: The Unfulfilled Promise of Executive Compensation". Bebchuk and Fried criticize the standard view of executive compensation, in which executives negotiate contracts with shareholders that provide incentives that motivate them to...

Persistent link: https://www.econbiz.de/10012465861

Keynesian Macroeconomics without the LM Curve

Romer, David - 2000

Changes in both the macroeconomy and in macroeconomics suggest that the IS-LM-AS model is no longer the best baseline model of short-run fluctuations for teaching and policy analysis. This paper presents an alternative model that replaces the assumption that the central bank targets the money...

Persistent link: https://www.econbiz.de/10012471315

The Fallacy of the Fiscal Theory of the Price Level

Buiter, Willem H. - 1999

or unsound argument'. The 'fiscal theory of the price level', recently re-developed by Woodford, Cochrane, Sims and … proponents of the fiscal theory of the price level do not accept the fundamental proposition that the government's intertemporal …. Policy conclusions could be drawn from the fiscal theory of the price level that would be harmful if they influenced the …

Persistent link: https://www.econbiz.de/10012471482