Computing Sunspot Equilibria in Linear (2002)
Thomas A. Lubik, Frank Schorfheide, We Thank Jinill Kim, Ellen Mcgrattan, Stephanie Schmitt-grohe, Martin Uribe
We provide computationally simple methods of analyzing the e#ects of fundamental and sunspot shocks in linear rational expectations models when the equilibrium is indeterminate. Under indeterminacy...
Taxes, Regulations, and Asset Prices (2001)
Asset Prices, Ellen Mcgrattan, Edward Prescott
U.S. stock prices risen much faster than gross national product (GNP) during post-war period. Between 1960 and 2000, equity value relative to GNP more than doubled. We a standard growth model show...
Household production and taxation in the stochastic growth model
Ellen McGrattan, Richard Rogerson, Randall Wright
We estimate a dynamic general equilibrium model of the U.S. economy that includes an explicit household production sector. We use these estimates to investigate two issues. First, we analyze how well...
An equilibrium model of the business cycle with household production and fiscal policy
Ellen McGrattan, Richard Rogerson, Randall Wright
We estimate a dynamic general equilibrium model of the U.S. economy that includes an explicit household production sector and stochastic fiscal variables. We use our estimates to investigate two...
Application of Weighted Residual Methods to Dynamic Economic Models, Finite Element Methods
This code supports the text in Ellen McGrattan, Application of Weighted Residual Methods to Dynamic Economic Models, in Ramon Marimon and Andrew Scott (eds), Computational Methods for the Study of...
Application of Weighted Residual Methods to Dynamic Economic Models, Spectral Methods
This code supports the text in Ellen McGrattan, Application of Weighted Residual Methods to Dynamic Economic Models, in Ramon Marimon and Andrew Scott (eds), Computational Methods for the Study of...
EconomicDynamics Interviews Ellen McGrattan on Business Cycle Accounting and Stock Market Valuation
Ellen McGrattan is Monetary Advisor at the Research Department of the Federal Reserve Bank of Minneapolis and Adjunct Professor of Economics at the University of Minneapolis. She has worked on a...
Why Did U.S. Market Hours Boom in the 1990s?
Ellen McGrattan, Edward Prescott
During the 1990s, market hours in the United States rose dramatically. The rise in hours occurred as gross domestic product (GDP) per hour was declining relative to its historical trend, an...
V.V. Chari, Patrick J. Kehoe, Ellen McGrattan
We propose and demonstrate a simple method for guiding researchers in developing quantitative models of economic fluctuations. We show that a large class of models are equivalent to a prototype...
Productivity and the Post-1990 U.S. Economy
Ellen McGrattan, Edward Prescott
Productivity & Intangibles
Predicting the effects of Federal Reserve policy in a sticky price model: an analytical approach
In this paper, I characterize equilibria for a sticky-price model in which Federal Reserve policy is an interest-rate rule similar to that described in Taylor (1993). For standard preferences and...
Predictions of the Price of Capital
Edward Prescott, Ellen McGrattan
A central puzzle for asset pricing theory is that stock prices are much more volatile than corporate dividends. One possible resolution is to modify standard models by introducing stochastic discount...
Measurement with Minimal Theory
A central debate in applied macroeconomics is whether statistical tools that use minimal identifying assumptions are useful for isolating promising models within a broad class. In this paper, I...