Showing 1 - 10 of 12
We find that in 1989-1996, when U.S. monetary policy tightly targeted overnight fed funds rates, the volatility and persistence of spreads between target and term fed funds levels were larger for longer-maturity loans. We show that such patterns are consistent with an expectational model where...
Persistent link: https://www.econbiz.de/10005718491
This paper studies the distributive effects of growth when different agents' income is drawn from accumulated and non-accumulated factors of production in different proportions, notes that political interactions may contribute to determine factor shares and growth when income sources are...
Persistent link: https://www.econbiz.de/10005718843
This paper proposes a model of diversifiable uncertainty, irreversible investment decisions, and endogenous growth. The detailed microeconomic structure of the model makes it possible to study the general equilibrium effects of obstacles to labor mobility. Labor mobility costs reduce private...
Persistent link: https://www.econbiz.de/10005720648
Despite stringent dismissal restrictions in most European countries, rates of job creation and destruction are remarkably similar across European and North American labor markets. This paper shows that relative-wage compression is conducive to higher employer-initiated job turnover, and argues...
Persistent link: https://www.econbiz.de/10005828807
This paper studies simple partial equilibrium models of dynamic labor demand, under certainty. Labor turnover costs may or may not decrease the firm's average labor demand, depending on the form of the revenue function, on the rates of discount and of labor attrition, and on the relative size of...
Persistent link: https://www.econbiz.de/10005828818
We propose and solve an optimizing model which explains counterintuitive effects of fiscal policy in terms of expectations. If government spending follows an upward-trending stochastic process which the public believes may fall sharply when it reaches specific "target points," then optimizing...
Persistent link: https://www.econbiz.de/10005829348
Investment is often irreversible, in that installed capital has little or no value unless used in production. In the presence of ongoing uncertainty, an individual firm's irreversible investment policy optimally alternates short bursts of positive gross investment to periods of inaction, when...
Persistent link: https://www.econbiz.de/10005829918
We study positive and normative aspects of steady-state equilibrium in a market where firms of endogenous size experience idiosyncratic shocks and undergo a costly search process to hire their workers. The stylized model we propose highlights interactions between job-security provisions and...
Persistent link: https://www.econbiz.de/10005830163
We explore the effects of official targeting policy on the term-structure of nominal interest rates, adapting relevant insights from theoretical work on "peso problems" to account for realistic infrequency of target changes. Our analysis of daily U.S. interest rates and newly available...
Persistent link: https://www.econbiz.de/10005775101
Using data from 17 OECD countries over the 1960-96 period, we investigate the impact of institutions on the relative employment of youth, women, and older individuals. Theoretically, we show that labor market institutions meant to improve workers' income share imply larger disemployment effects...
Persistent link: https://www.econbiz.de/10005088971