Showing papers by "Federal Reserve Bank of Dallas published in 1991"
TL;DR: In this paper, a stochastic trend model is considered in which permanent shocks occur infrequently and randomly, and it is shown that this model is observationally equivalent to shifting/segmented deterministic trend models.
146 citations
TL;DR: In this article, the authors apply cross-sectional data to test whether default risk-induced credit constraints affect the demand for owner-occupied housing and find that credit-constrained households exhibit different elasticities of demand for housing than less constrained households.
75 citations
TL;DR: The authors examined average recoveries from distressed commercial real estate assets held by FSLIC receiverships, and explored differences in the relative efficiency of public versus quasi-private and private entities in the management of these assets.
Abstract: This study examines average recoveries from distressed commercial real estate assets held by FSLIC receiverships, and explores differences in the relative efficiency of public versus quasi-private and private entities in the management of these assets. It finds that properties located in markets with rising per capita income and properties that were judged to be less difficult to manage and sell provided higher recoveries, while properties with smaller writedowns prior to government takeover provided lower recoveries. The analysis also provides evidence that quasi-private management by the Federal Asset Disposition Agency provided higher mean recoveries, while private management by contractors provided lower mean recoveries than did public management by FSLIC receivership staff.
32 citations
TL;DR: In this article, the authors examined the finite sample properties of Dickey-Fuller tests for unit roots when shocks occur infrequently and showed that the power of the test is not dramatically altered.
17 citations
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TL;DR: In this article, the authors investigated the anomalous relationship between real stock returns and inflation and found that the equilibrium process in the monetary sector is not a consistent explanation for such a relationship, and they did not favor the hypothesis that debt monetization lies behind the performance of the stock market during inflationary periods.
Abstract: This study investigates the anomalous relationship between real stock returns and inflation. Specifically, we investigate hypotheses that claim the proxy relationship between inflation and expected real output is driven by the practice of debt monetization and/or countercyclical monetary policy carried out by the central bank. Using a rational expectations approach to the determination of stock returns, the equilibrium process in the monetary sector is not found to be a consistent explanation for the anomalous relationship. Also, the results do not favor the hypothesis that debt monetization lies behind the performance of the stock market during inflationary time periods.(This abstract was borrowed from another version of this item.)
17 citations
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TL;DR: In this paper, two definitions of price stability have been proposed that encompass the interpretations of the economic literature and explore the degree to which price stability constrains short-term stabilization policy.
Abstract: In this paper, we propose two definitions of price stability that encompass the interpretations of price stability found in the economic literature. To determine the conditions under which monetary policy can achieve price stability, we examine several well-known classes of monetary rules including the targeting of monetary aggregates, nominal GNP, prices, and interest rates. In addition, we use a linear rational expectations model to explore the degree to which price stability constrains short-term stabilization policy. We find that price stability does not necessarily prevent the monetary authority from pursuing short-term stabilization goals.
12 citations
TL;DR: This article investigated the impact that changes in the public's forecast accuracy would have on the monetary authority's behavior and found that fixed growth rules or discretion yield higher ex ante payoffs to the monetary authorities when the predictability of policymaker preferences changes.
1 citations