Paper Link Xiaojun Wang and Chi-Young Choi: Discontinuity of Output Convergence Within the United States: Why Has the Course Changed?, Economic Inquiry, January 2015.
Paper Link Miriam Bruhn and Inessa Love: The Real Impact of Improved Access to Finance: Evidence from Mexico, Journal of Finance, June 2014
Paper Link Ronald Lee, Andrew Mason, and members of the NTA network : Is Low Fertility Really a Problem? Science, 10 October 2014.
We quantify the influence of migration and housing on urban population dy- namics using a dynamic general equilibrium model of cities incorporating a new theory of migration motivated by patterns uncovered in a panel of US cities. Cities experience near random walk productivity shocks, yet population is slow to adjust. We show that measuring and modeling gross migration is essential to quantifying these dynamics. Housing matters because it is immobile, slow to build, and is durable. We use our data and additional evidence to calibrate the model, finding a city’s population, gross migration, employment, wages, home construction and house prices respond to productivity shocks much as we esti- mate they do in our data. Costs of finding better cities to live and work drive slow population adjustments in the short run with housing playing a limited role. We also find that migration costs could be important for understanding persistent urban decline.
Date: Friday, February 12, 2016, at 3 p.m.
Room: Saunders 515
Title: Home Production Technology and Time Allocation - Empirics, Theory and Implications
Speaker: Lei Fang
Institution: Federal Reserve Bank of Atlanta
This paper estimates the home production technology and studies its implications on time allocation and labor supply. Our structural approach emphasizes the importance of joint estimation of the productivity at home and the elasticity of substitution between market goods and home time. The joint estimation is made possible by exploiting both time series and cross sectional variations of wage rates, expenditure and time use variables. The estimated elasticity of substitution is approximately 2.1 and the estimated labor-augmenting home productivity grew by 1.4 to 1.6% per year. Using the estimated model to study the effect of the proportional income ax on time allocation, the paper demonstrates the quantitative importance of: (i) home productivity, and (ii) cross sectional distribution of wage rate. The estimated model also implies that households mainly reduce home hours in response to a permanent wage increase but reduce both home hours and leisure in response to a transitory wage increase, which is consistent with the recent empirical findings.
Mondays from 12-1:30 pm
Tuesdays from 12-1 pm
Wednesdays from 12-1pm