Tag Archives: Great Recession

Investment Hangover and the Great Recession

From Alp Simsek, Andrei Sheifer, and Matthew Rognile: We present a model of investment hangover motivated by the Great Recession. In our model, overbuilding of residential capital requires a reallocation of productive resources to nonresidential sectors, which is facilitated by … Continue reading

Posted in Uncategorized | Tagged , , , , , , | 1 Comment

New Evidence on the Impact of Financial Crises in Advanced Countries

New (preliminary) work from Christy and David Romer: This paper revisits the aftermath of financial crises in advanced countries in the decades before the Great Recession. We construct a new series on financial distress in 24 OECD countries for the … Continue reading

Posted in Uncategorized | Tagged , , , , , | Leave a comment

Debt and the Consumption Response to Household Income Shocks

From Scott Baker: This paper exploits a new detailed household dataset with comprehensive financial information on millions of households to investigate the interaction between household balance sheets, income, and consumption during the Great Recession. In particular, I test whether consumption … Continue reading

Posted in Uncategorized | Tagged , , , , | Leave a comment

Weekend Readings

1. Taxation and Saving – A Retrospective from Alan Auerbach 2. All men are created unequal – the economist on Piketty’s new book 3. Dealing with the Financial Crisis and the Recession from Brad Delong 4. The return of “patrimonial capitalism”: review of … Continue reading

Posted in Uncategorized | Tagged , , , , , , , , , , , , , , , , , | Leave a comment

Moving to Opportunity? Migratory Insurance over the Great Recession

From Danny Yagan: Over the Great Recession, the employment rate in some U.S. cities declined by more than twice the aggregate decline. To what extent did the ability to migrate insure workers against these idiosyncratic local shocks? I answer this … Continue reading

Posted in Uncategorized | Tagged , , , , , , , | Leave a comment

Arrested Development: Theory and Evidence of Supply-Side Speculation in the Housing Market

From Nathanson and Zwick: This paper incorporates speculation into the standard supply-and-demand framework used to analyze housing booms and busts. Speculation reverses the common intuition that elastic housing supply attenuates housing booms. Housing market frictions make land a more attractive … Continue reading

Posted in Uncategorized | Tagged , , , , , , , , | Leave a comment

The Long Short Run

From Brad Delong (full article here): The problem now is that the natural interest rate – that is, the liquid safe nominal interest rate on short-term US Treasury securities – is less than zero. Thus, the central bank cannot push … Continue reading

Posted in Uncategorized | Tagged , , | Leave a comment