E23

Minsu Chang · Hanbaek Lee

This paper investigates the fiscal multiplier of infrastructure investment, specifically by incorporating firm-level investment decisions — a dimension absent from prior literature. The central …

Valerie A. Ramey

Surveying theory, aggregate U.S. time-series evidence, and the newer cross-state/cross-locality literature on the government-spending multiplier, Ramey concludes that the multiplier for a temporary, …

Pablo Ottonello

Physical capital, like labour, can be "unemployed" — sitting idle while its owner searches for a buyer or tenant — and this paper documents that in the United States such idle capital is large, …

Rüdiger Bachmann · Christian Bayer · Heiko Stüber · Felix Wellschmied

When employers face a trade-off between growing large and paying low wages — that is, when they have monopsony power — some productive employers will decide to acquire fewer customers, forgo sales, …

Sushant Acharya · Edouard Challe · Keshav Dogra

An analytically tractable heterogeneous-agent New Keynesian (HANK) model in which a utilitarian planner's optimal monetary policy departs from the representative-agent benchmark because interest rates …

Paul Gaggl · Aspen Gorry · Christian vom Lehn

Gaggl, Gorry, and vom Lehn document that services sectors produce a rising share of output in both of the US production networks they study — the input-output network for intermediate inputs and the …

Adrien Bilal · Diego R. Känzig

The paper shows that the macroeconomic impact of climate change is an order of magnitude larger than what standard country-level panel estimates suggest. The key identification innovation is to …