Alternative Methods for Solving Heterogeneous Firm Models

I implement and compare five solution methods for a benchmark heterogeneous firms model with lumpy capital adjustment and aggregate uncertainty. The Krusell–Smith algorithm performs best within a group of methods using projection in the aggregate states. Another technique, Parameterization plus Perturbation, is much faster and performs best within a group of methods using perturbation in aggregates. However, projection and perturbation have nonoverlapping strengths and weaknesses. I highlight the resulting trade‐offs with several model extensions. I recommend that researchers apply projection methods to cases with large shocks or nonlinear dynamics, while cases with explicitly distributional channels at work favor perturbation.     

A COMPARISON OF MEXICAN MIGRANT REMITTANCES ACROSS U.S. REGIONS

Since 1990, the United States has experienced a geographic dispersion of Mexican migrants from traditional gateways to new regions. Using data from the Mexican Migration Project, we find significant differences in both the likelihood of remitting and the amount remitted by Mexican migrants across U.S. regions. Specifically, Mexican migrants living in U.S. regions that have experienced considerable increases in migrant populations since 1990 (the Northeast, Southeast, Mountain, and Midwest regions) remit at higher rates and in larger quantities than migrants living in more traditional migrant destinations (the Pacific and South Central regions), even after controlling for observed differences in migrant populations. ( JEL F22, F32, J11, R23)     

Time Variation in the Inflation Passthrough of Energy Prices

From Bayesian estimates of a vector autoregression that allows for both coefficient drift and stochastic volatility, we obtain the following three results. First, beginning in approximately 1975, the responsiveness of core inflation to changes in energy prices in the United States fell rapidly and remains muted. Second, this decline in the passthrough of energy inflation to core prices has been sustained through a recent period of markedly higher volatility of shocks to energy inflation. Finally, reduced energy inflation passthrough has persisted in the face of monetary policy that became less responsive to energy inflation starting around 1985.     

Urban population in late medieval England: the evidence of the lay subsidies

Was there a growth in the proportion of the population living in England's towns in the later middle ages? Uncertainty about national population trends and about the taxation multipliers needed to arrive at population totals has made it difficult to answer this question. A direct comparison of the proportion of taxpayers that was urban in 1377 and 1524 suggests that the urban share of population was static or may even have declined in this period. However, such decline provides no simple index of urban prosperity or decay: a decline in urbanization could be the product of rural buoyancy rather than of urban recession.     

What Constitutes Evidence of Discrimination in Lending?

We analyze a simple model of bank lending in order to ascertain what can be inferred from relative denial and default rates about lending discrimination. We show that if minority applicants are of lower average creditworthiness than majority applicants, then, contrary to a popular argument, a uniform, nondiscriminatory credit policy cannot simultaneously produce (i) higher denial rates for minority applicants, and (ii) equal default rates for minority and majority applicants. Moreover, we show that equality of denial or default rates always implies discrimination. In particular, equal denial (default) rates imply discrimination against majority (minority) applicants.     

The Real Effects of FAS 166/167 on Banks’ Mortgage Approval and Sale Decisions

We examine the real effects of FAS 166 and FAS 167 on banks’ loan‐level mortgage approval and sale decisions. Effective in 2010, these standards tightened the accounting for securitizations and consolidation of securitization entities, respectively, causing banks to recognize an estimated $811 billion of securitized assets on balance sheet. We find that banks that recognize more securitized assets exhibit larger decreases in mortgage approval rates and larger increases in mortgage sale rates. These effects significantly exceed those of banks’ off–balance sheet securitized assets, consistent with our results being driven by the consolidation of securitization entities rather than by securitization per se. We conduct tests that help rule out the financial crisis as an alternative explanation for our results. Further analyses suggest that mechanisms underlying the results include consolidating banks’ reduced regulatory capital adequacy, increased market discipline, and consequent desire not to recognize high‐risk mortgages on balance sheet.     

健全的金融体系：金融监管和公司治理

健全的金融体系是每个成功的经济体制的核心,它配置资本并且转移风险。银行业从计划经济体制向市场经济体制转型中面临着重要的挑战,政府为此出台了一系列举措。健全的金融体系的建立主要包括两个方面,一方面是对金融机构的监管法规,另一方面是金融机构对其行为的自我管理,即公     

Governing Lisbon: Evolving Forms of City Governance

For Lisbon, a dominant national capital and increasingly internationalized city, the last 30 years have witnessed a period of dramatic growth, modernization and dynamism. As the socioeconomic landscape has changed, so too has the political and institutional one, with a significant evolution in the nature of systems of governance to manage, respond to and lead the city through this period of intense transition. Whilst increased global and particularly European integration has been an important driver to change, critically it has been the interplay of these global forces with the role and constitution of the national state and political developments at the level of the city, region and municipality that has shaped the evolutionary path of governance change. This article analyses recent governance change within Lisbon to argue that governance transition within Lisbon is characterized by significant change with regard to the relationships between public and private sectors, but also by strong continuities with regard to the dominant role of the central state in the absence of political devolution. The result is a governance system marked by structural constraints that limit the city's capacity to deal with current strategic challenges in an integrated, coordinated and inclusionary manner.     

Inter‐temporal Tie‐ins: A Case for Tying Intellectual Property Through Licensing

Hybrid licences tie trade secret rights (which have no fixed expiration) to related patent rights (which expire). Although level royalty hybrid licences, which charge a single royalty for both rights, have been prohibited, it can be shown that infinite‐term licensing (ITL) for patent rights may be better than a limited‐term patent, when returns to the licensor are fixed. This article explains hybrid licensing as a means of privately implementing the efficient ITL outcome when returns to the licensor are constrained but not necessarily fixed, without requiring a change in the length of the patent term.