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Intergenerational Risk Sharing in the Spirit of Arrow, Debreu, and Rawls, with Applications to Social Security Design

Ball, Laurence; Mankiw, N. Gregory - 2021

This paper examines the optimal allocation of risk in an overlapping-generations economy. It compares the allocation of risk the economy reaches naturally to the allocation that would be reached if generations behind a Rawlsian 'veil of ignorance' could share risk with one another through...

Persistent link: https://www.econbiz.de/10013248396

Real Business Cycles : a New Keynesian Perspective

Mankiw, N. Gregory - 2021

This paper is a critique of the latest new classical theory of economic fluctuations. According to this theory, the …. This paper discusses several versions of this theory and argues that this line of research is unlikely to yield an …

Persistent link: https://www.econbiz.de/10013227516

Intertemporal Substitution in Macroeconomics

Mankiw, N. Gregory - 2011

Modern neoclassical theories of the business cycle posit that aggregate fluctuations in consumption and employment are the consequence of dynamic optimizing behavior by economic agents who face no quantity constraint. In this paper, we estimate an explicit model :f this type. In particular, we...

Persistent link: https://www.econbiz.de/10013132070

The Optimal Taxation of Height : A Case Study of Utilitarian Income Redistribution

Mankiw, N. Gregory - 2011

Should the income tax include a credit for short taxpayers and a surcharge for tall ones? The standard Utilitarian framework for tax analysis answers this question in the affirmative. Moreover, a plausible parameterization using data on height and wages implies a substantial height tax: a tall...

Persistent link: https://www.econbiz.de/10013134658

An Exploration of Optimal Stabilization Policy

Mankiw, N. Gregory - 2011

This paper examines the optimal response of monetary and fiscal policy to a decline in aggregate demand. The theoretical framework is a two-period general equilibrium model in which prices are sticky in the short run and flexible in the long run. Policy is evaluated by how well it raises the...

Persistent link: https://www.econbiz.de/10013124860

Optimal Taxation in Theory and Practice

Mankiw, N. Gregory - 2010

We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax … policy. As recommended by theory, top marginal income tax rates have declined, marginal income tax schedules have flattened … theory. Moreover, some of theory's more subtle prescriptions, such as taxes that involve personal characteristics, asset …

Persistent link: https://www.econbiz.de/10013152503

An Asset Allocation Puzzle

Canner, Niko - 2008

This paper examines popular advice on portfolio allocation among cash, bonds, and stocks. It documents that this advice is inconsistent with the mutual-fund separation theorem, which states that all investors should hold the same composition of risky assets. In contrast to the theorem, popular...

Persistent link: https://www.econbiz.de/10012774873

Optimal Advice for Monetary Policy

Basu, Susanto - 2007

This paper addresses the issue of how to give optimal advice about monetary policy when it is known that the advice may not be heeded. We examine a simple macroeconomic model in which monetary policy has the ability to stabilize output by offsetting exogenous shocks to aggregate demand. The...

Persistent link: https://www.econbiz.de/10012777153

Recent Developments in Macroeconomics : a Very Quick Refresher Course

Mankiw, N. Gregory - 2007

This paper outlines the major developments in macroeconomics over the past two decades. It examines the reasons for the breakdown in the consensus view of the 1960s and how this breakdown has guided research in macroeconomics. The introduction and importance of quot;rational expectationsquot;...

Persistent link: https://www.econbiz.de/10012777225

The Macroeconomist as Scientist and Engineer

Mankiw, N. Gregory - 2006

This essay offers a brief history of macroeconomics, together with an evaluation of what has been learned over the past several decades. It is based on the premise that the field has evolved through the efforts of two types of macroeconomist%u2014 those who understand the field as a type of...

Persistent link: https://www.econbiz.de/10012779829