Federal Reserve System

About: Federal Reserve System is a other organization based out in Washington D.C., District of Columbia, United States. It is known for research contribution in the topics: Monetary policy & Inflation. The organization has 2373 authors who have published 10301 publications receiving 511979 citations.

The Construction of an Asset Index Measuring Asset Accumulation in Ecuador

Abstract: Development economists have increasingly advocated using assets to complement income and consumption-based measures of welfare and wealth in developing countries, and thus to extend our understanding of the multi-dimensional character of poverty and the complexity of the processes underlying poverty reduction. The objective of this technical paper is to contribute to the debate about the measurement of assets, and the development of asset indices. It describes the particular methodology developed to construct an asset index based on a longitudinal panel data set from Guayaquil, Ecuador. It then outlines its application in terms of the different components of the asset index, before concluding by identifying several continuing methodological problems.

Risk appetite and exchange rates

Abstract: We present evidence that fluctuations in the aggregate balance sheets of financial intermediaries forecast exchange rate returns—at weekly, monthly, and quarterly frequencies, both in and out of sample, and for a large set of countries. We estimate prices of risk using a cross-sectional, arbitrage-free asset pricing approach and show that balance sheets forecast exchange rates because of the latter’s association with fluctuations in risk premia. We provide a rationale for an intertemporal equilibrium pricing theory in which intermediaries are subject to balance sheet constraints.

Risk Preferences in the PSID: Individual Imputations and Family Covariation

Abstract: Unobserved heterogeneity greatly complicates empirical analysis in economics. Unobserved heterogeneity in preferences is particularly troublesome because there are so few theoretical restrictions on the distribution of preference parameters in the population. Therefore, despite potential pitfalls, we have developed direct survey measures of preference parameters based on hypothetical choices and appropriate econometric techniques for dealing with the inevitable measurement error in any such measures. Our work on survey measures of preference parameters focuses on risk tolerance (Robert B. Barsky, F. Thomas Juster, Kimball, and Shapiro 1997 (BJKS hereafter) and Kimball, Claudia R. Sahm, and Shapiro 2008 (KSS hereafter)), time preference and the elasticity of intertemporal substitution (BJKS), and labor supply elasticities (Kimball and Shapiro 2008).