Look for the next GCER Newsletter in June. Past Newsletters can be found here.
News Archive - Page 23
Feb 15, 2011
A new paper by GCER Fellow William Jack and co-author Tavneet Suri of MIT examining mobile banking in Kenya was recently featured in the NY Times Freakonomics Blog. This is the second time that Jack's research on Kenya was picked up by the popular NY Times blog. The first reported last year on a field experiment by Jack and co-author James Habyarimana of Georgetown GPPI, examining the effect of informative posters on Kenyan traffic fatalities.
Jan 20, 2011
Exchange-Rate Dynamics by Martin Evans, GCER Research Fellow and Professor of Economics at Georgetown University. Published by Princeton University Press & forthcoming in 2011.
From the Princeton U. Press web site: ``Variations in the foreign exchange market influence all aspects of the world economy, and understanding these dynamics is one of the great challenges of international economics. This book provides a new, comprehensive, and in-depth examination of the standard theories and latest research in exchange-rate economics. Covering a vast swath of theoretical and empirical work, the book explores established theories of exchange-rate determination using macroeconomic fundamentals, and presents unique microbased approaches that combine the insights of microstructure models with the macroeconomic forces driving currency trading." (Read more from the PUP site ).
Jan 6, 2011
Bachmann and Bai examine the effects of wealth bias in the policy process.
In their paper, "Government Purchases Over the Business Cycle: the Role of Economic and Political Inequality (GCER Working Paper, 2010)," Ruediger Bachmann and Jinhui H. Bai explore the implications of economic and political inequality for the business cycle comovement of government purchases in the U.S. They conduct theirquantitative experiments in a standard model of economic growth in which public expenditures financed by income taxes are determined by the political process. A key feature of their study is a wealth bias in the political process that disproportionately weights the clout of upper income groups. Increases in income inequality therefore lead to increased political inequality. The analysis shows a negative correlation between wealth bias and the degree of business cycle comovement of government purchases.The estimated wealth bias that matches the observed mild procyclicality of government purchases in the data, is also consistent with cross-sectional survey data on political participation.
This effect is illustrated in the graph below where increases in the wealth bias of the policy-making process can be seen to dampen the correlation between income and purchases.
Dec 26, 2010
James Albrecht, Axel Anderson, Mark Huggett, and Susan Vroman.
Congratulations to the four GCER Fellows cited in this year's Nobel summary, MARKETS WITH SEARCH FRICTIONS . James Albrecht, Axel Anderson, Susan Vroman, and Mark Huggett were all cited for work related to this year's Nobel recipients, Peter Diamond, Dale Mortensen, and Christopher Pissarides. Albrecht and Vroman were invited to attend the Nobel ceremony in Sweden in December. At right they are pictured at the ceremony with Peter Diamond and past Nobel recipient Daniel McFadden.