No abstract.

This paper investigates the channels of risk sharing among the cities of the United States. Contributions for social security and government transfers (government channel) take the bulk of smoothing (17%), and intercity mobility ranks high: about 6% of income shocks are smoothed via the choice...

Two extensions of a model in the presence of an alternative model are proposed. The extensions are based on the score function of the alternative model. It is shown that the encompassing hypothesis is equivalent to standard conditions on the score of each of the extended models. The condition on...

This paper uses the widely held assumption that left-wing cabinets prefer a larger size of government than right-wing cabinets to answer the question: does the pair cabinet ideology - fiscal action affect the persistence of fiscal adjustments? For a panel of OECD countries from 1960 to 1995, we...

This paper presents a fiscal theory of exchange rate crises. When the fiscal authority allows the present value of primary surpluses inclusive of seigniorage to differ from the current real value of government debt at the pegged exchange rate and a constant expected future interest rate, then...

No abstract.

Entrepreneurship may not be good for growth. We study the role of entrepreneurship in the context of an endogenous growth model. The exercise of entrepreneurship has two features in our model: (i) Entrepreneurs do not carry out research, instead, they select projects from the researchers, and...

Existing estimates of the income elasticity suggest that, in the absence of price increases, US imports will eventually exceed US income. That the United States will change from being a largely self-sufficient economy to one that cannot cover its imports has received a great deal of attention in...

Value at Risk has become the standard measure of market risk employed by financial institutions for both internal and regulatory purposes. Despite its conceptual simplicity, its measurement is a very challenging statistical problem and none of the methodologies developed so far give satisfactory...

This paper investigates an international monetary business-cycle model in which agents face monetary policy processes that incorporate regime shifts. In any period, agents cannot directly observe the policy regime, but, instead, form beliefs that are updated through Bayesian learning. Monetary...