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A Framework for Efficient Government Investment

Warner, Andrew M. - 2013

Welfare economics, scope and performance of government, externalities, public goods, cost-benefit analysis, subsidies … addresses externalities, provided the social return is above a threshold. This paper argues that another consideration needs to … be brought into the mix - whether, in spite of the externalities, the private sector has an incentive to undertake the …

Persistent link: https://www.econbiz.de/10013085132

Liquidity Choice and Misallocation of Credit

Ebrahimy, Ehsan - 2020

This paper studies a novel type of misallocation of credit between investments of varying liquidity. One type of investment is more liquid, i.e., its return is more pledgeable, and the other is more productive. Low liquidities of both investment types imply that the allocation of credit is...

Persistent link: https://www.econbiz.de/10012843309

Inefficient Fire-Sales in Decentralized Asset Markets

Ebrahimy, Ehsan - 2019

Classic models of fire-sales that emphasize liquidity-constrained natural buyers can-notfully account for the asset fire-sales during the Financial Crisis of 2008. I present a modelto demonstrate that fire-sales may happen even when there is a sizable pool of naturalbuyers and in the absence of...

Persistent link: https://www.econbiz.de/10012868464

Can International Technological Diffusion Substitute for Coordinated Global Policies to Mitigate Climate Change?

Barrett, Philip - 2022

In short, yes. I use a multi-region integrated assessment model with fuel-specific endogenous technical change to examine the impact of Europe and China reducing emissions to zero by mid-century. Without international technological diffusion this is insufficient to avoid catastrophic climate...

Persistent link: https://www.econbiz.de/10013306786

Optimal Monetary and Macroprudential Policies Under Fire-Sale Externalities

Lutz, Flora - 2023

I provide an integrated analysis of monetary and macroprudential policies in a model economy featuring a financial friction and a nominal wage rigidity. In this set-up, the monetary authority faces a trade-off between macroeconomic and financial stability: While expansionary counter-cyclical...

Persistent link: https://www.econbiz.de/10014350473

Supply Spillovers During the Pandemic : Evidence from High-Frequency Shipping Data

Cerdeiro, Diego; Komaromi, Andras - 2021

World trade contracted dramatically during the global economic crisis induced by the COVID-19 pandemic. Disruptions in international supply chains were widely reported as governments imposed containment measures (lockdowns) to halt the spread of the disease. At the same time, demand declined as...

Persistent link: https://www.econbiz.de/10013250078

Cyber Risk, Market Failures, and Financial Stability

Kopp, Emanuel - 2017

Cyber-attacks on financial institutions and financial market infrastructures are becomingmore common and more sophisticated. Risk awareness has been increasing, firms activelymanage cyber risk and invest in cybersecurity, and to some extent transfer and pool theirrisks through cyber liability...

Persistent link: https://www.econbiz.de/10012948520

A Macroeconomic Approach to the Term Premium

Kopp, Emanuel - 2018

In recent years, term premia have been very low and sometimes even negative. Now, with the United States economy growing above potential, inflationary pressures are on the rise. Term premia are very sensitive to the expected future path of growth, inflation, and monetary policy, and an inflation...

Persistent link: https://www.econbiz.de/10012913929

Determinants of U.S. Business Investment

Kopp, Emanuel - 2018

U.S. business investment has taken a serious toll during the global financial crisis and also in the recovery phase investment did not pick up as expected. What is surprising is that the alleged investment slowdown happened at a time of record corporate profits and retained earnings, highly...

Persistent link: https://www.econbiz.de/10012913931

Robust Optimal Macroprudential Policy

Montamat, Giselle; Roch, Francisco - 2021

We consider how fear of model misspecification on the part of the planner and/or the households affects welfare gains from optimal macroprudential taxes in an economy with occasionally binding collateral constraints as in Bianchi (2011). On the one hand, there exist welfare gains from...

Persistent link: https://www.econbiz.de/10013226440