Discount window borrowing,monetary policy,and the post-October 6, 1979 federal reserve operating procedure

A demand schedule for discount window borrowing based on profit-maximizing bank behavior is derived. A feature of non-price rationing at the discount window making longer duration borrowing more costly is shown to make lagged borrowing and expected future spreads between the Federal funds rate and the discount rate relevant to the current borrowing decision. Consequently, both the size of the coefficients in the borrowing functions as well as the form of the function itself depend on expected Fed policy toward the spread. The demand function for discount window borrowing provides the critical link by which non-borrowed reserve control affects short-term interest rates and ultimately the money supply under post-October 6, 1979 reserve targeting. The analysis suggests some reasons why the Fed has experienced difficulty in specifying, estimating, and utilizing a discount window borrowing function in the non-borrowed reserve operating procedure.     

Early Labor Market Experiences of Youth and Subsequent Wages

A bstract . High youth unemployment continues to be a major concern to policymakers in the United States. In view of the many studies that have documented a perpetuation of the relatively high jobless rates for youth in the postwar period whether disaggregated by age, sex , or race , the debate on the youth employment-unemployment problem has begun to focus more recently on its socioeconomic consequences. One of the overriding concerns is that early labor market unemployment experiences might carry over into later labor force performance. The cumulative effects of prolonged periods of unemployment and intermittent unemployment (i.e. , duration and spells of unemployment) on the subsequent wages of a cohort of young men are examined. Spells of unemployment experienced early in the labor market careers of the cohort tended to have an increasing effect on their later wages , while spells occurring later and the duration of unemployment then serve to lower their subsequent wages.     

The Magnesium Industry in Transition

Dow Chemical dominated the magnesium industry for decades but ultimately exited in 1998. This article considers the evolution of the industry and Dow's decision to divest.     

A review of research on regulation changes in the Asia‐Pacific region

In this study, we review the financial research on regulation in the Asia‐Pacific region. We do this by analysing six leading regional accounting and finance journals – Abacus, Accounting & Finance, Australian Accounting Review, Australian Journal of Management, International Review of Finance and the Pacific‐Basin Finance Journal. We identify five main themes of regulation research relating to: (i) banking and financial institutions, (ii) markets and trading, (iii) corporate governance, (iv) disclosure and (v) accounting standard setting. Our paper synthesises the regional literature in these areas and provide some suggestions for future directions.     

Estimation of International Demand Behaviour for Use with Input-Output Based Data

The making of projections often requires an economy-wide perspective, and the estimation of consumer demands at the international level. In this paper, an implicit, directly additive demand system (AIDADS) is estimated using cross- country data on consumer expenditures from two different sources: the International Comparison Programme (ICP), and the Global Trade Analysis Project (GTAP). The two data sets are found to produce results that are quite consistent despite their differing origins, and the fact that the former is based on consumer goods that embody wholesale/retail margins, while margin demands are treated separately in GTAP. Given the similarity of the results, the estimation based on GTAP data is favoured for economy-wide projection purposes because it can be readily matched to input-output based production and trade data. An additional benefit of the GTAP-based estimates is that they provide direct evidence concerning how aggregate margin expenditures vary with per capita income.