Working Papers
Stimulating discussion and critical comment on research in progress.
1989
- WP 89-18
- Altruism, Borrowing Constraints, and Social Security
- An examination of how intergenerational altruism and borrowing constraints shape the interest rate, savings, and welfare response to funded and unfunded Social Security programs. (PDF)
- WP 89-17
- The Timing of Intergenerational Transfers, Tax Policy, and Aggregate Savings
- An analysis of the interest rate and savings effects of fiscal policy in an overlapping generations framework, discussing the circumstances under which capital’s steady-state marginal product varies. (PDF)
- WP 89-16
- An Analysis of Bank Failures: 1984 TO 1989
- A study that models the regulatory decision to close a bank as a call option. A two-equation model of bank failure that treats closings as regulatorily timed events is compared with two single-equation models for accuracy. (PDF)
- WP 89-15
- Regime Changes in Stock Returns
- The authors model stock returns as a stochastic function of a constant expected return and the financing costs resulting from delayed delivery, to examine three potential sources of instability in stock-return model parameter estimates. (PDF)
- WP 89-14
- The Role of Banks in Influencing Regional Flows of Funds
- A presentation of a theoretical model of regional banking using plausible information asymmetries to explain how local bank capital may affect the funding of regional investments, concluding that regional banking conditions can affect the efficiency of investment and the level of future aggregate output. (PDF)
- WP 89-13
- Portfolio Risks and Bank Asset Choice
- An investigation of the effects of credit risk and interest-rate risk on bank portfolio choices, showing how bank capital inadequacy may prevent a bank from investing in the optimal portfolio and how the efficiency of the bank’s intermediation technology affects its choice of second-best portfolio. (PDF)
- WP 89-12
- Enforcement of Pollution Regulations in a Declining Industry
- An examination of the relationship between the number of local governments within local labor markets and their expenditures, finding empirical support in both suburbs and central cities for the connection between the structure of the local public service market and its performance. (PDF)
- WP 89-11
- Factor-Adjustment Costs at the Industry Level
- An examination of the relationship between the number of local governments within local labor markets and their expenditures, finding empirical support in both suburbs and central cities for the connection between the structure of the local public service market and its performance. (PDF)
- WP 89-10
- Structure, Conduct, and Perfornance in the Local Public Sector
- An examination of the relationship between the number of local governments within local labor markets and their expenditures, finding empirical support in both suburbs and central cities for the connection between the structure of the local public service market and its performance. (PDF)
- WP 89-09
- Public Infrastructure and Regional Economic Development: a Simultaneous Equations Approach
- An analysis of how central-bank exchange-market intervention can affect both the level of exchange rates and the risk premium in asset returns, showing how the risk premium is related to the conditional variances of intervention and other exogenous processes. (PDF)
- WP 89-08
- Intervention and the Risk Premium in Foreign Exchange Rates
- An analysis of how central-bank exchange-market intervention can affect both the level of exchange rates and the risk premium in asset returns, showing how the risk premium is related to the conditional variances of intervention and other exogenous processes. (PDF)
- WP 89-07
- The Structure of Supervision and Pay in Hospitals
- An examination of the intensity of supervision in the workplace and its effect on the pay of nonsupervisory employees through the use a wage survey of the hospital industry. (PDF)
- WP 89-06
- Do Wage Differences among Employers Last?
- An analysis of the variance of wages within and between industries, finding that wage differences are virtually stationary over time and are related to establishment size. (PDF)
- WP 89-05
- Modeling Large Conmercial-Bank Failures: a Simultaneous-Equation Analysis
- The development of a model of large-bank failures that studies insolvency and failure simultaneously and that recognizes economic, political, and bureaucratic constraints faced by regulators. (PDF)
- WP 89-04
- Dedicated Taxes and Rent Capture by Public Employees
- A test of whether the enactment of a dedicated tax leads to higher payroll and wages for public employees, by means of survey results from the local mass-transit industry. (PDF)
- WP 89-03
- Predicting De Novo Branch Entry into Rural Markets
- An investigation of the probability of de novo branch entry into rural banking markets in Ohio and Pennsylvania to determine whether potential competition is an effective disciplinary force in bank-market expansion. (PDF)
- WP 89-02
- A Two-Sector Implicit Contracting Model with Procyclical Quits and Involuntary Layoffs
- An explanation of involuntary unemployment and procyclical quits based on models of implicit contracts and on-the-job search. (PDF)
- WP 89-01
- The Effects of Disinflationary Policies on Monetary Velocity
- A study of the effect of disinflation policies on monetary velocity, which shows a systematic relation between unexpected changes in the money-income relationship and changes in the trends of inflation rates, and which concludes that the failure to commit to a stable price policy tends to destabilize the economy. (PDF)