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2134 Results

Can Capital Deepening Explain the Global Decline in Labor’s Share?

Staff working paper 2019-3 Andrew Glover, Jacob Short
We estimate an aggregate elasticity of substitution between capital and labor near or below one, which implies that capital deepening cannot explain the global decline in labor's share. Our methodology derives from transition paths in the neo-classical growth model.
May 19, 2011

Understanding and Measuring Liquidity Risk: A Selection of Recent Research

During the recent financial crisis, one of the forces set in motion by the initial losses on subprime-mortgage loans was a significant decline in the market liquidity of assets and in the ability of financial institutions to obtain funding in wholesale markets. In this article, the authors summarize recent research that clarifies the role of liquidity in destabilizing the financial system and examine the implications of this research for the recently announced financial system reforms, including Basel III.

The Causal Impact of Migration on US Trade: Evidence from Political Refugees

Staff working paper 2017-49 Walter Steingress
Immigrants can increase international trade by shifting preferences towards the goods of their country of origin and by reducing bilateral transaction costs. Using geographical variation across U.S. states for the period 2008 to 2013, I estimate the respective causal impact of immigrants on U.S. exports and imports.

COVID-19 and Implications for Automation

Staff working paper 2021-25 Alex Chernoff, Casey Warman
Occupations held by females with mid-level education face the highest risk of accelerated automation as a result of the COVID-19 pandemic.

From Micro to Macro Hysteresis: Long-Run Effects of Monetary Policy

Staff working paper 2024-39 Felipe Alves, Giovanni L. Violante
We explore the long-run effects of a monetary policy shock in a Heterogeneous Agent New Keynesian model built on the micro evidence that job losses lead to persistently lower individual earnings through a combination of skill decay and abandonment of the labour force.

Sources of Borrowing and Fiscal Multipliers

Staff working paper 2018-32 Romanos Priftis, Srecko Zimic
This paper finds that debt-financed government spending multipliers vary considerably depending on the location of the debt buyer. In a sample of 33 countries, we find that government spending multipliers are larger when government purchases are financed by issuing debt to foreign investors (non-residents), compared with when government purchases are financed by issuing debt to home investors (residents).
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