According to the conventional view of the business cycle, fluctuations in output represent temporary deviations from trend. The purpose of this paper is to question this conventional view. If fluctuations in output are dominated by temporary deviations...
The issue of dynamic efficiency is central to analyses of capital accumulation and economic growth. Yet the question of what characteristics should be examined to determine whether actual economies are dynamically efficient is unresolved. This paper...
This paper examines the impact of major demographic changes on the housing market in the United States. The entry of the Baby Boom generation into its house-buying years is found to be the major cause of the increase in real housing prices in the 1970s...
This paper analyzes the effects of government debt and income taxes on consumption and saving in a world of infinitely lived households having uncertain and heterogeneous incomes. The special structure of the model allows exact aggregation across...
This article reexamines the consistency of the permanent-income hypothesis with aggregate postwar U.S. data. The permanent-income hypothesis is nested within a more general model in which a fraction of income accrues to individuals who consume their...
This paper, though new, draws heavily on my previous paper, "Recent Developments in Macroeconomics: A Very Quick Refresher Course," Journal of Money, Credit, and Banking, August 1988, Part 2. I am grateful to Moses Abramovitz, David Laidler, and Thomas...
Only one-fourth of U.S. families own stock. This paper examines whether the consumption of stockholders differs from the consumption of nonstockholders and. if so. whether these differences help explain the empirical failures of the consumption-based CAPM...
In previous work we have argued that aggregate, post-war, United States data on consumption and income are well described by a model in which a fraction of income accrues to individuals who consume their current income rather than their permanent income...
This paper examines whether the Solow growth model is consistent with the international variation in the standard of living. It shows that an augmented Solow model that includes accumulation of human as well as physical capital provides an excellent...
