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Institution

National Bureau of Economic Research

NonprofitCambridge, Massachusetts, United States
About: National Bureau of Economic Research is a nonprofit organization based out in Cambridge, Massachusetts, United States. It is known for research contribution in the topics: Monetary policy & Population. The organization has 2626 authors who have published 34177 publications receiving 2818124 citations. The organization is also known as: NBER & The National Bureau of Economic Research.


Papers
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Posted Content
TL;DR: In this paper, a menu-cost model is presented in which positive trend inflation causes firms' relative prices to decline automatically between price adjustments, and shocks that raise firms' desired prices trigger larger price responses than shocks that lower desired prices.
Abstract: This paper considers a possible explanation for asymmetric adjustment of nominal prices. We present a menu-cost model in which positive trend inflation causes firms' relative prices to decline automatically between price adjustments. In this environment, shocks that raise firms' desired prices trigger larger price responses than shocks that lower desired prices. We use this model of asymmetric adjustment to address three issues in macroeconomics: the effects of aggregate demand, the effects of sectoral shocks, and the optimal rate of inflation.

629 citations

Posted Content
TL;DR: This paper employed cohort technique and consumer expenditure survey data to construct average age-profiles of consumption and income over the working lives of typical households across different education and occupation groups, using these profiles, they estimate a structural model of optimal life-cycle consumption expenditures in the presence of realistic labour income uncertainty.
Abstract: This paper employs cohort technique and Consumer Expenditure Survey data to construct average age-profiles of consumption and income over the working lives of typical households across different education and occupation groups. Using these profiles, we estimate a structural model of optimal life-cycle consumption expenditures in the presence of realistic labour income uncertainty. The model fits the profiles quite well. In addition to providing tight estimates of the discount rate and risk aversion, we find that consumer behaviour changes strikingly over the life-cycle. Young consumers behave as buffer-stock agents. Around the age of 40, the typical household starts accumulating liquid assets for retirement and its behaviour mimics more closely that of a certainty equivalent consumer. This change in behaviour is mostly driven by the life-cycle profile of expected income. Our methodology provides a natural decomposition of saving into its precautionary and retirement components.

628 citations

Journal ArticleDOI
TL;DR: In this article, the authors developed a decomposition that breaks M/B into three components: the firm-specific pricing deviation from short-run industry pricing; sector-wide, short run deviations from firms' long run pricing; and long-run pricing to book.
Abstract: To test recent theories that suggest valuation errors affect merger activity, we develop a decomposition that breaks M/B into three components: the firm-specific pricing deviation from short-run industry pricing; sector-wide, short-run deviations from firms' long-run pricing; and long-run pricing to book. We find strong support for recent theories by Rhodes-Kropf and Viswanathan (2003) and Shleifer and Vishny (2003), which predict that misvaluation drives mergers. So much of the behavior of M/B is driven by firm-specific deviations from short-run industry pricing, that long-run components of M/B run counter to the conventional wisdom: Low long-run value to book firms buy high long-run value to book firms. Misvaluation affects who buys whom, as well as method of payment, and combines with neoclassical explanations to explain aggregate merger activity.

628 citations

Posted Content
TL;DR: The authors study the effects of oil price changes and other shocks on the creation and destruction of U.S. manufacturing jobs from 1972 to 1988, and find that oil shocks account for about 20-25 percent of the cyclical variability in employment growth under their identifying assumptions, twice as much as monetary shocks.
Abstract: We study the effects of oil price changes and other shocks on the creation and destruction of U.S. manufacturing jobs from 1972 to 1988. We find that oil shocks account for about 20-25 percent of the cyclical variability in employment growth under our identifying assumptions, twice as much as monetary shocks. Employment growth shows a sharply asymmetric response to oil price ups and downs, in contrast to the prediction of standard equilibrium business cycle models. The two-year employment response to an oil price increase rises (in magnitude) with capital intensity, energy intensity, and product durability. Job destruction shows much greater short-run sensitivity to oil and monetary shocks than job creation in every sector with the clear exception of young, small plants. Oil shocks also generate important reallocative effects. For example, we estimate that job reallocation rose by 11 percent of employment over 3-4 years in response to the 1973 oil shock. More than 80 percent of this response reflects greater job reallocation activity within manufacturing.

625 citations

Journal Article
TL;DR: In this paper, the authors investigated how financial development affects aggregate productivity growth and showed that the level of financial development is good only up to a point, after which it becomes a drag on growth.
Abstract: This paper investigates how financial development affects aggregate productivity growth. Based on a sample of developed and emerging economies, we first show that the level of financial development is good only up to a point, after which it becomes a drag on growth. Second, focusing on advanced economies, we show that a fast-growing financial sector is detrimental to aggregate productivity growth.

624 citations


Authors

Showing all 2855 results

NameH-indexPapersCitations
James J. Heckman175766156816
Andrei Shleifer171514271880
Joseph E. Stiglitz1641142152469
Daron Acemoglu154734110678
Gordon H. Hanson1521434119422
Edward L. Glaeser13755083601
Alberto Alesina13549893388
Martin B. Keller13154165069
Jeffrey D. Sachs13069286589
John Y. Campbell12840098963
Robert J. Barro124519121046
René M. Stulz12447081342
Paul Krugman123347102312
Ross Levine122398108067
Philippe Aghion12250773438
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Performance
Metrics
No. of papers from the Institution in previous years
YearPapers
202379
2022253
2021661
2020997
2019767
2018780