Showing papers in "Review of Economic Dynamics in 2010"

TL;DR: This article conducted a systematic empirical study of cross-sectional inequality in the United States, integrating data from the Current Population Survey, the Panel Study of Income Dynamics, the Consumer Expenditure Survey, and the Survey of Consumer Finances.

TL;DR: In this paper, a three-shocks U.S. business cycle model is presented, and the authors argue that the micro implications of the model strongly favor the firm-specific capital specification.

TL;DR: The authors showed that the Rouwenhorst method is more robust than others with respect to variation in the persistence of the process, the number of points used in the discrete approximation and the procedure used to generate model statistics.

TL;DR: In this article, a costly state verification model of financial intermediation is presented to address the question of how important financial development for economic development, and the analysis suggests a country like Uganda could increase its output by 116 percent if it could adopt the world's best practice in the financial sector.

TL;DR: In this article, inequality trends in wages, hours worked, earnings, consumption, and wealth for Germany from the last twenty years were studied. And they found that inequality was relatively stable in West Germany until the German reunification, and then trended upwards for wages and market incomes, especially after about 1998.

TL;DR: In this article, the authors provide an introduction to the special issue of the Review of Economic Dynamics on "Cross-Sectional Facts for Macroeconomists" and discuss selected results, with an emphasis on cross-country comparisons.

TL;DR: In this paper, the authors present an analysis of the trends in inequality across income, earnings and consumption in Britain since 1978 and document the episodic nature of inequality growth over this period largely dominated by the inequality "boom" in earnings inequality of the 1980s.

TL;DR: In this paper, the authors developed a quantitative dynamic stochastic small open economy model with incomplete markets, endogenous fiscal policy and sovereign default where public expenditures and tax rates are optimally procyclical.

TL;DR: In this article, the authors document some features of the distribution of income, consumption and wealth in Canada using survey data from many difierent sources, including conflential data and publicly available data.

TL;DR: In this article, the authors present stylized facts on labor supply, income, consumption, wealth, and several measures of consumption and income inequality drawn from the 1980-2006 Survey of Household Income and Wealth (SHIW) conducted by the Bank of Italy.

TL;DR: The authors proposed a general equilibrium framework merging the Hansen and Prescott [Hansen, Gary D., Prescott, Edward C., 2002] model with the Barro and Becker [Barro, Robert J., Becker, Gary S., 1989] model of fertility choice.

TL;DR: In this paper, the authors analyzed cross-sectional income and consumption inequality trends and found that inequality decreased during the 2000-2005 economic recovery, driven by falling volatility of transitory income shocks.

TL;DR: In this paper, a simple random-walk process captures much of the life-cycle dynamics of the Swedish earnings process, and it is shown that the true earnings process is not a random walk.

TL;DR: Fortran codes to generate all results in the paper and Stata routines for the data work are also included, along with non-copyrighted data.

TL;DR: In this paper, the authors characterize the evolution of inequality in hourly wages, hours of work, labor earnings, household disposable income, and household consumption for Spain between 1985 and 2000.

TL;DR: In this article, the authors use a dynamic Heckscher-ohlin model and show that countries that differ only in their initial endowments of capital per worker may converge or diverge in income levels over time, depending on the elasticity of substitution between traded goods.

TL;DR: In this article, the authors investigate what part of the rise in labor force participation of married women between 1980 to 1990 (a rise of 13 percentage points) can be accounted by the changes in taxes.

TL;DR: In this article, the authors construct a new data set of consumption and income data for the largest US metropolitan areas, and show that the extent of risk sharing between regions varies substantially over time.

TL;DR: In this article, the authors investigated the welfare cost of business cycles implied by matching frictions and showed that job finding rate fluctuations generate intrinsically a non-linear effect on unemployment: positive shocks reduce unemployment less than negative shocks increase it.

TL;DR: In this article, a dynamic general equilibrium model with state and private enterprises was developed for the Chinese economy and quantitatively assessed the economic effects of reducing subsidies to the state sector as required by the WTO.

TL;DR: This paper developed a general equilibrium model of fertility and labor market decisions that builds on the labor matching framework of Mortensen and Pissarides (1994) to assess their quantitative impact, and found that females gain substantially with generous policies but this benefit occurs at the expense of a reduction in the welfare of males.

TL;DR: In this article, the authors describe the main cross-sectional facts on individual and household earnings, labor supply, income, consumption and wealth in Mexico in the decade of the 1990s.

TL;DR: This article showed that financial frictions in the form of collateralized borrowing at the …rm level can give rise to convex adjustment costs at the aggregate level, yet at the same time generate lumpiness in plant-level investment.

TL;DR: In this paper, the authors explore how rational inattention (RI) affects optimal consumption and investment decisions in an otherwise standard intertemporal model of portfolio choice, and show that RI increases the implied equity premium because investors under RI face greater long-run consumption risk and thus require higher compensation.

TL;DR: In this paper, a weaker concept of rigidity based on worker rents (wages in excess of the value of unemployment) is studied, and it is shown that volatility is subject to an upper bound if worker rents are weakly procyclical, thus at best rigid.

TL;DR: In this paper, the authors study the sovereign default model that has been used to account for the cyclical behavior of interest rates in emerging market economies and find that the efficiency of the discrete state space technique can be greatly improved by finding the equilibrium as the limit of the equilibrium of the finite-horizon version of the model.

TL;DR: In this article, the authors show that the long-run neutrality of inflation on capital accumulation obtained in complete market models no longer holds when households face binding credit constraints, and they quantify the importance of this new channel in an incomplete market model where the traditional redistributive effects of inflation are also introduced.

TL;DR: The authors found that both housing quantities and homeownership rates respond strongly to eliminating social security, and that the aggregate impacts of this policy reform are significantly larger in an economy with explicit housing choices than in a standard life-cycle economy.

TL;DR: The authors show that dynamic interactions between elastic credit supply and persistent credit demand can generate a multiplier-accelerator mechanism that transforms a one-time productivity or financial shock into large and long-lasting boom-bust cycles.

TL;DR: In this paper, the authors show that in the relative-deep-habits model of Ravn, Schmitt-Grohe, and Uribe (2006), firm-specific marginal cost shocks are not fully passed through to product prices.