The SVAR and narrative approaches to estimating tax multipliers deliver significantly different results. The former yields multipliers of about 1 percent, whereas the latter produces much larger multipliers of about 3 percent. The SVAR and narrative approaches differ along two important...

Recent work with Factor-Augmented Vector Autoregression (FAVAR) suggests that standard VAR analysis can be improved by incorporating the information in a large number of macroeconomic time series. I examine what new information FAVAR factors contribute. Using a sparse modification to principal...

We study the quantitative potential of DSGE models with incomplete information. In contrast to existing literature, we offer predictions that are robust across all possible private information structures that agents may have. Our approach maps DSGE models with information-frictions into a...

We find that observed cross-country price differences primarily reflect regional market segmentation occurring within countries. Using a model of price-setting subject to costly search, we show that identification of national versus regional segmentation requires augmenting price data with...