National Bureau of Economic Research

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.

The Channels of Monetary Transmission: Lessons for Monetary Policy

Abstract: This paper provides an overview of the transmission mechanisms of monetary policy, starting with traditional interest rate channels, going on to channels operating through other asset prices, and then on to the so-called credit channels. The paper then discusses the implications from this literature for how central banks might best conduct monetary policy.

Energy Efficiency Economics and Policy

Abstract: Energy efficiency and conservation are considered key means for reducing greenhouse gas emissions and achieving other energy policy goals, but associated market behavior and policy responses have engendered debates in the economic literature. We review economic concepts underlying consumer decision making in energy efficiency and conservation and examine related empirical literature. In particular, we provide an economic perspective on the range of market barriers, market failures, and behavioral failures that have been cited in the energy efficiency context. We assess the extent to which these conditions provide a motivation for policy intervention in energy-using product markets, including an examination of the evidence on policy effectiveness and cost. Although theory and empirical evidence suggests there is potential for welfare-enhancing energy efficiency policies, many open questions remain, particularly relating to the extent of some key market and behavioral failures.

Is Fixed Investment the Key to Economic Growth

Abstract: This paper examines shares of fixed capital formation in GDP and rates of economic growth for more than 100 countries over successive five-year periods between 1965 and 1985 to determine the direction of causality between them. Simple regressions and multiple regressions including several standard determinants of growth, as well as a simple causality test, provide more evidence that increases in growth precede rises in rates of capital formation than that increases in capital formation precede increases in growth. High rates of fixed capital formation accompany rapid growth in per capita income, but we find no evidence that fixed investment is the only or main source of ignition for economic growth.

Did Unilateral Divorce Laws Raise Divorce Rates? A Reconciliation and New Results

Abstract: Application of the Coase Theorem to marital bargaining suggests that shifting from a consent divorce regime to no-fault unilateral divorce laws should not affect divorce rates. Each iteration of the empirical literature examining the evolution of divorce rates across US states has yielded different conclusions about the effects of divorce law liberalization. I show that these results reflect a failure to jointly consider both the political endogeneity of these divorce laws and the dynamic response of divorce rates to a shock to the political regime. Taking explicit account of the dynamic response of divorce rates to the policy shock, I find that liberalized divorce laws caused a discernible rise in divorce rates for about a decade, but that this increase was substantially reversed over the next decade. That said, this increase explains very little of the rise in the divorce rate over the past half century. Both administrative data on the flow of new divorces, and measures of the stock of divorcees from the census support this conclusion. These results are suggestive of spouses bargaining within marriage, with an eye to their partner's divorce threat.

The Impact of Mass Migration on the Israeli Labor Market

Abstract: Mass migration from the former Soviet Union increased the Israeli population by 12% in the first half of the 1990s. This exodus was precipitated by the lifting of emigration restrictions in an unstable USSR and by the open immigration policy of Israel toward Soviet Jews, who faced more restrictive entry policies elsewhere. I use this natural experiment to study the impact of immigration on the labor market outcomes of native Israelis. OLS yields significant reductions in wages and small reductions in employment. However, OLS is biased if the distribution of immigrants across occupations in Israel was not exogenous to relative wage and employment conditions. I instrument for the entry of Russians into an occupation in Israel, using information on their former occupations in the USSR. There is a significant positive correlation between the former presence of the immigrants in an occupation in the USSR and their presence in that occupation in Israel. But the previous occupational choices of Russians abroad were independent of Israeli wage and employment growth subsequent to their migration. IV estimates indicate that immigration did not have an adverse impact on native Israeli labor market outcomes.