Many metropolitan areas in the United States display substantial racial segregation and substantial variation in incomes and house prices across neighborhoods. To what extent can this variation be summarized by a small number of representative (or synthetic) neighborhoods? To answer this...

The life-cycle patterns of consumption, wage and hours inequality observed in U.S. cross-section data are commonly viewed as incompatible with a Pareto efficient allocation. We determine the extent to which these qualitative and quantitative patterns can or cannot be produced by Pareto efficient...

Market participants may not expect recent ECB policy to boost inflation.

We assess the consequences of substantially increasing the marginal tax rate on U.S. top earners using a human capital model. The top of the model Laffer curve occurs at a 53 percent top tax rate. Tax revenues and the tax rate at the top of the Laffer curve are smaller compared to an otherwise...

We analyze the Diamond-Saez policy recommendation within a human capital model. We calculate the steady-state welfare implications of raising the marginal income tax rate on top incomes from current levels to those in the range of 54 percent to 80 percent. We also calculate the transitional...

Este trabajo presenta evidencia según la cual la crisis reciente del sector hipotecario en Colombia fue consecuencia del incremento en la relación entre el saldo de los créditos y el valor de las garantías (LTV o loan-to-value ratio) que aumentó la vulnerabilidad de los hogares al ciclo...

Este trabajo presenta evidencia según la cual la crisis reciente del sector hipotecario en Colombia fue consecuencia del incremento en la relación entre el saldo de los créditos y el valor de las garantías (LTV o loan-to-value ratio) que aumentó la vulnerabilidad de los hogares al ciclo...

Data on consumption, earnings, wages and hours dispersion over the life cycle has been viewed as being at odds with an efficient allocation. We challenge this view. We show that a model with preference and wage shocks and full insurance produces the type of inequality patterns across age groups...