New research from Manuel Amador and his coauthor Mark Aguiar finds that creditor beliefs regarding future borrowing can be self-fulfilling, leading to multiple equilibria with markedly different debt accumulation patterns.
Government spending and monetary policy have consequences not only for the pace of economic growth, but for who shares in prosperity. Recent research by Anmol Bhandari aims to refine the relationship between cause and effect. It’s a problem not only of mathematics, but of revising the way economists think about policy choices.
A new study examines decision-making between husbands and wives using data from surveys of nearly 3,500 women in Japan from 1993 to 2013. In an interview, Jeremey Lise outlined some of the insights of his latest research.
Since 1990, population growth in California and New York has stalled. Why? The relative price of moving to those states has soared – partly the result of land use regulations that make other locales more attractive, according to the latest research by economists Kyle Herkenhoff and co-authors.
After the Great Recession left millions of Americans out of work, many received extended unemployment insurance benefits. While some accused the extra aid of slowing economic recovery, the latest research finds no evidence that increasing the duration of unemployment benefits leads to large negative effects on the economy.
In the early 1970s, hours worked per working-age person in Spain were higher than in the U.S. A mere 5 years later, hours worked in Spain fell by 40 percent. Tim Kehoe and his coauthor examine the reasons behind the decline in hours and analyze the impacts taxes and productivity have on this phenomenon.
A new working paper by Fatih Guvenen and co-authors investigates how shifting profits overseas is impacting U.S. productivity measures. "The current international accounting system allows a lot of flexibility — you might say too much flexibility — which allows companies to shift their profits to low-tax jurisdictions," said Fatih Guvenen of the research.
Focusing on Chile and Korea, two countries that experienced rapid growth followed by an economic slowdown, Tim Kehoe and his co-authors study the role of firm entry and exit in aggregate productivity growth.