Jess Benhabib, Mark M. Spiegel
Recent research has concluded that the historical evidence only provides weak support for the contention that deflation episodes are harmful to economic growth. In this paper, we revisit this...
Redistribution,Taxes,andthe Median Voter ∗ (2008)
Marco Bassetto, Jess Benhabib, Jel Numbers H, Onur Ozgur
We study a simple model of production, accumulation, and redistribution, where agents are heterogeneous in their initial wealth, and a sequence of redistributive tax rates is voted upon. Though the...
Advertising, Mass Consumption and Capitalism ∗ (2008)
Western societies have developed into a historically new stage in the evolution of capitalism, one which is characterized by corporations exercising monopolistic power and sustaining demand by...
We provide a new model of consumption-saving decisions which explicitly allows for internal commitment mechanisms and self-control. Agents have the ability to invoke either automatic processes that...
We show that under indeterminacy aggregate demand shocks are able to explain not only aspects of actual fluctuations that standard RBC models predict fairly well, but also aspects of actual...
The Monetary Transmission Mechanism 1 by (2007)
Jess Benhabib, David Hume, Of Money
support. Farmer’s research was supported by N.S.F. grant #952912. Since the writing of David Hume, in the eighteenth century, there has been a general agreement amongst economists that an increase...
The Monetary Transmission Mechanism * Address for Correspondence: by (2007)
Jess Benhabib, Badia Fiesolana
Recent literature on structural vector autoregressions has attempted to identify the effects on the economy of an increase in the stock of money. This work has led to a broad consensus. Initially, an...
Stephanie Schmitt-Grohé ‡ Rutgers University (2007)
Since John Taylor’s (1993) seminal paper, a large literature has argued that active interest rate feedback rules, that is, rules that respond to increases in inflation with a more than one-for-one...
Advertising, Mass Consumption and Capitalism ∗ (2007)
Western societies have developed into a historically new stage in the evolution of capitalism, one which is characterized by corporations exercising monopolistic power and sustaining demand by...
We show that under indeterminacy aggregate demand shocks are able to explain not only aspects of actual °uctuations that standard RBC models predict fairly well, but also aspects of actual...
Growth and Investment Across Countries: Are Primitives All That Matter? (2007)
Jess Benhabib, Mark M. Spiegel
This paper examines the channels through which country characteristics affect growth. We investigate whether “primitives, ” or rates of factor accumulation, are sufficient statistics for economic...
Backward-Looking Interest-Rate Rules, Interest Rate Smoothing, (2007)
And Macroeconomic Instability, Jess Benhabib, Stephanie Schmitt-grohé, Martín Uribe, Interest-rate Rules, Interest Rate, ...
The existing literature on the stabilizing properties of interest-rate feedback rules has stressed the perils of linking interest rates to forecasts of future inflation. Such rules have been found to...
state. We show that the stationary wealth distribution is a (2007)
Jess Benhabib, Alberto Bisin, Alberto Bressan, Gianluca Clementi, Isabel Correia, Mariacristina De Nardi, ...
The distribution of wealth:
Jess Benhabib, Boyan Jovanovic
We ask what level of migration would maximize world welfare. We …nd that skill-neutral policies are never optimal. An egalitarian welfare function induces a policy that entails moving mainly...
Age, Luck, and Inheritance (Preliminary) (2007)
We present a mechanism to analytically generate a double Pareto distri-bution of wealth in a continuous time OLG model with optimizing agents who have bequest motives, and are subject to stochastic...
Jess Benhabib, Boyan Jovanovic
We ask what level of migration would maximize world welfare. We …nd that skill-neutral policies are never optimal. An egalitarian welfare function induces a policy that entails moving mainly...
Jess Benhabib, Alberto Bisin, Andrew Schotter
In this paper we elicit preferences for money-time pairs via experimental techniques. We estimate a general specification of discounting that nests exponential and hyperbolic discounting, as well as...
The Design of Monetary and Fiscal Policy: A Global Perspective (2005)
Jess Benhabib, Stefano Eusepi, John Leahy, Hakan Tasci, Martin Uribe
We study the the emergence of multiple equilibria in models with capital and bonds under various monetary and …scal policies. We show that the presence of capital is indeed another independent...
Human capital and technology diffusion (2005)
Jess Benhabib, Mark M. Spiegel, Rody Manuelli, Chris Papageorgiou
This paper generalizes the Nelson-Phelps catch-up model of technology diffusion. We allow for the possibility that the pattern of technology difusion can be exponential, which would predict that...
Human capital and technology diffusion (2005)
Jess Benhabib, Mark M. Spiegel, Rody Manuelli, Chris Papageorgiou
This paper generalizes the Nelson-Phelps catch-up model of technology diffusion. We allow for the possibility that the pattern of technology difusion can be exponential, which would predict that...
Jess Benhabib, Roberto Perli, Plutarchos Sakellaris
In this paper we explore whether the changing composition of output in response to technology shocks can play a significant role in the propagation of shocks over time. For this purpose we study two...
Interest Rate Policy in Continuous Time with Discrete Delays ∗ (2003)
We study the design of monetary policy in a continuous time framework with delays. More explicitly, we consider a linear, flexible price model where inflation and nominal interest rates chage...
The Underestimated Virtues of the Two-Sector AK Model (2003)
Gabriel J. Felbermayr, Omar Licandro, Documento De Trabajo, Jess Benhabib, Larry Jones
We show that the two-sector AK model proposed by Rebelo (1991) can be read as an endogenous growth extension of Greenwood, Hercowitz and Krusell (1997). By confining constant returns to capital to...
Chaotic Interest Rate Rules (2002)
Jess Benhabib, Stephanie Schmitt-grohé, Martín Uribe
A growing empirical and theoretical literature argues in favor of specifying monetary policy in the form of Taylor-type interest rate feedback rules. That is, rules whereby the nominal interest rate...
Avoiding Liquidity Traps (2002)
Jess Benhabib, Stephanie Schmitt-grohé, Martín Uribe
Once the zero bound on nominal interest rates is taken into account, Taylor-type interest-rate feedback rules give rise to unintended self-fulfilling decelerating inflation paths and aggregate...
Another View of Investment: 40 Years Later (2001)
Does it matter whether productivity growth is embodied in new machines or whether it is disembodied and lifts the productivity of all equipment? Phelps (1962) argued that the composition of the...
The Monetary Transmission Mechanism (1999)
BENHABIB, Jess, FARMER, Roger E.A.
http://www.iue.it/ECO/WP-Texts/ECO99-35.pdf
The Monetary Transmission Mechanism (1999)
BENHABIB, Jess, FARMER, Roger E.A.
http://www.iue.it/ECO/WP-Texts/ECO99-35.pdf
The Monetary Transmission Mechanism (1999)
BENHABIB, Jess, FARMER, Roger E.A.
http://www.iue.it/ECO/WP-Texts/ECO99-35.pdf
Indeterminacy in a Model with Sector-Specific Externalities (1999)
Sharon G. Harrison, Jess Benhabib, Jang-ting Guo, Michael Horvath, Kiminori Matsuyama, Kay Robbins
I examine a model with two sectors of production: consumption and investment. In the model, indeterminacy of equilibria results due to the presence of small sector-specific externalities in...
The Political Economy of Redistribution under Democracy,” working paper (1993)
Jess Benhabib, Adam Przeworski
We ask what redistributions of income and assets are feasible in a democracy, given the initial assets and their distribution. The question is motivated by the possibility that if redistribution is...
Homework in macroeconomics: household production and aggregate fluctuations
Jess Benhabib, Richard Rogerson, Randall Wright
This paper explores some macroeconomic implications of including household production in an otherwise standard real business cycle model. We calibrate the model based on microeconomic evidence and...
Backward-Looking Interest-Rate Rules, Interest-Rate Smoothing, and Macroeconomic Instability
Jess Benhabib, Stephanie Schitt-Grohe, Martin Uribe
The existing literature on the stabilizing properties of interest-rate feedback rules has stressed the perils of linking interest rates to forecasts of future inflation. Such rules have been found to...
The Design of Monetary and Fiscal Policy: A Global Perspective
We study the the emergence of multiple equilibria in models with capital and bonds under various monetary and fiscal policies. We show that the presence of capital is indeed another independent...
Chaotic Interest Rate Rules: Expanded Version
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
A growing empirical and theoretical literature argues in favor of specifying monetary policy in the form of Taylor-type interest rate feedback rules. That is, rules whereby the nominal interest rate...
Redistribution, Taxes and the Median Voter
We study a simple model of production, accumulation, and redistribution, where agents are heterogeneous in their initial wealth, and a sequence of redistributive tax rates is voted upon. Though the...
Backward-looking interest-rate rules, interest-rate smoothing, and macroeconomic instability
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
The existing literature on the stabilizing properties of interest-rate feedback rules has stressed the perils of linking interest rates to forecasts of future inflation. Such rules have been found to...
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
Once the zero bound on nominal interest rates is taken into account, Taylor-type interest rate feedback rules give rise to unintended self-fulfilling decelerating inflation paths and aggregate...
Redistribution, taxes, and the median voter
We study a simple model of production, accumulation, and redistribution, where agents are heterogeneous in their initial wealth, and a sequence of redistributive tax rates is voted upon. Though the...
Redistribution, Taxes and the Median Voter
We study a simple model of production, accumulation, and redistribution, where agents are heterogeneous in their initial wealth, and a sequence of redistributive tax rates is voted upon. Though the...
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
Once the zero bound on nominal interest rates is taken into account, Taylor-type interest-rate feedback rules give rise to unintended self-fulfilling decelerating inflation paths and aggregate...
The political economy of redistribution under democracy
Jess Benhabib, Adam Przeworski
Redistribution, Democracy, ictatorship,
Human Capital and Technology Diffusion
Benhabib, Jess, Spiegel, Mark M., Philippe Aghion, Steven Durlauf
This paper generalizes the Nelson-Phelps catch-up model of technology diffusion. We allow for the possibility that the pattern of technology diffusion can be exponential, which would predict that...
Optimal Migration: A World Perspective
Jess Benhabib, Boyan Jovanovic
We ask what level of migration would maximize world welfare. We find that skill-neutral policies are never optimal. An egalitarian welfare function induces a policy that entails moving mainly...
Jess Benhabib, Aldo Rustichini
In this paper we study the relationship between wealth, income distribution and growth in a game-theoretic context in which property rights are not completely enforceable. We consider equilibrium...
Vintage Capital, Investment and Growth
Jess Benhabib, Aldo Rustichini
We study the dynamics of growth and investment in a continuous time model with vintage capital. Vintage capital models may be characterized by non-exponential rates of depreciation and technical...
Externalities and Growth Accounting
Jess Benhabib, Boyan Jovanovic
We reexamine several bodies of data on the growth of output, labor, and capital, within the context of a model that admits the possibility of an externality to the capital input. The model is an...
Monetary Policy and Multiple Equilibria
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
This paper characterizes conditions under which interest-rate feedback rules that set the nominal interest rate as an increasing function of the inflation rate induce aggregate instability by...
Externalities and Growth Accounting.
Benhabib, Jess, Jovanovic, Boyan
This paper tackles two puzzles: the high empirical elasticity of aggregte output with respect to the measured capital input and the seemingly high variability of growth rates over countries in the...
Benhabib, Jess, Schmitt-Grohe, Stephanie, Uribe, Martin
When the Central Bank sets nominal rates as a a non-decreasing function of the inflation rate to stabilize the economy, that is it uses a Taylor Rule, the zero lower bound on interest rates may...
Monetary policy and multiple equilibria
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
In this paper, we characterize conditions under which interest rate feedback rules whereby the nominal interest rate is set as an increasing function of the inflation rate generate multiple...
Growth and investment across countries
Jess Benhabib, Mark M. Spiegel
This paper examines the channels through which country characteristics affect growth. We investigate whether "primitives," or rates of factor accumulation, are sufficient statistics for economic...
Human capital and technology diffusion
Jess Benhabib, Mark M. Spiegel
This paper generalizes the Nelson-Phelps catch-up model of technology diffusion. We allow for the possibility that the pattern of technology diffusion can be exponential, which would predict that...
Moderate inflation and the deflation-depression link
Jess Benhabib, Mark M. Spiegel
In a recent paper, Atkeson and Kehoe (2004) demonstrated the lack of a robust empirical relationship between inflation and growth for a cross-section of countries with 19th and 20th century data,...
Benhabib, Jess, Rustichini, Aldo
Despite the predictions of the neoclassical theory of economic growth, we observe that poor countries have invested at lower rates and have not grown faster than rich countries. To explain these...
Indeterminacy and sunspots in macroeconomics
Benhabib, Jess, Farmer, Roger E.A., J. B. Taylor, M. Woodford
This chapter gives an overview of the recent literature on indeterminacy and sunspots in macroeconomics. It discusses of some of the conceptual and the technical aspects of this literature, and...
The Monetary Transmission Mechanism
Recent literature on structural vector autoregressions has attempted to identify the effects on the economy of an increase in the stock of money. This work has led to a broad concensus. Initially, an...
The design of monetary and fiscal policy: a global perspective
We study the emergence of multiple equilibria in models with capital and bonds under various monetary and fiscal policies. We show that the presence of capital is indeed another independent source of...
Backward-Looking Interest Rate Rules, Interest Rate Smoothing and Macroeconomic Instability
Benhabib, Jess, Schmitt-Grohé, Stephanie, Uribe, Martín
The existing literature on the stabilizing properties of interest-rate feedback rules has stressed the perils of linking interest rates to forecasts of future inflation. Such rules have been found to...
The Role of Financial Development in Growth and Investment.
Benhabib, Jess, Spiegel, Mark M
This article decomposes the well-documented relationship between financial development and growth. We examine whether financial development affects growth solely through its contribution to growth in...
Human capital and technology diffusion
This paper generalizes the Nelson-Phelps catch-up model of technology diffusion facilitated by levels of human capital. We allow for the possibility that the pattern of technology diffusion can be...
On the economics of fiscal populism in an open economy
We study a representative agent, open economy in which government-provided services that enter the domestic production function must be financed with distortionary taxes, and focus on the optimal...
Backward-looking interest-rate rules, interest-rate smoothing, and macroeconomic instability
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
The existing literature on the stabilizing properties of interest-rate feedback rules has stressed the perils of linking interest rates to forecasts of future inflation. Such rules have been found to...
The Political Economy of Redistribution under Democracy
Adam Przeworski, Jess Benhabib
We ask what redistributions of income and assets are feasible in a democracy, given the initial assets and their distribution. The question is motivated by the possibility that if redistribution is...
Is Discounting Hyperbolic? Experimental Evidence
A vast empirical evidence in experimental psychology on time discounting has documented various behavioral anomalies which cast doubts on the empirical support for exponential discounting, to date...
Redistribution, Taxes, and the Median Voter
We study a simple model of production, accumulation, and redistribution, where agents are heterogeneous in their initial wealth, and a sequence of redistributive tax rates is voted upon. Though the...
The distribution of wealth and redistributive policies
In this paper we study theoretically the dynamics of the distribution of wealth in an Overlapping Generation economy with bequest and various forms of redistributive taxation. We characterize the...
Indeterminacy and Sector-specific Externalities
Benhabib, Jess, Farmer, Roger E A
We introduce mild increasing returns to scale into a version of the Real Business Cycle model. These increasing returns to scale occur as a consequence of sector-specific externalities, that is,...
The Monetary Transmission Mechanism
Benhabib, Jess, Farmer, Roger E A
In this paper we take as given that market economies are characterized by a set of stylized responses to increases in the stock of money. Innovations to the stock of money lead to increased output...
Benhabib, Jess, Schmitt-Grohé, Stephanie, Uribe, Martín
Since John Taylor's (1993) seminal paper, a large literature has argued that active interest rate feedback rules, that is, rules that respond to increases in inflation with a more than one-for-one...
Monetary Policy and Multiple Equilibria
Benhabib, Jess, Schmitt-Grohé, Stephanie, Uribe, Martín
In this paper, we characterize conditions under which interest rate feedback rules that set the nominal interest rate as an increasing function of the inflation rate induce aggregate instability by...
Benhabib, Jess, Schmitt-Grohé, Stephanie, Uribe, Martín
Once the zero-bound on nominal interest rates is taken into account, Taylor-type interest-rate feedback rules give rise to unintended self-fulfilling decelerating inflation paths and aggregate...
Interest Rate Policy in Continuous Time with Discrete Delays.
We study the design of monetary policy in a continuous-time framework with delays. More explicitly, we consider a linear, flexible-price model where inflation and nominal interest rates change...
Public spending and optimal taxes without commitment
Andrés Velasco, Jess Benhabib, Aldo Rustichini
We consider a representative agent, infinite-horizon economy where production requires private and public capital. The supply of public capital is financed through distortionary taxation. The optimal...
research article : Indeterminacy and cycles in two-sector discrete-time model
Kazuo Nishimura, Jess Benhabib, Alain Venditti
We consider a discrete-time two-sector Cobb-Douglas economy with positive sector specific external effects. We show that indeterminacy of steady states and cycles can easily arise with constant or...
Global Equilibrium Dynamics with Stationary Recursive Preferences
Benhabib, Jess, Majumdar, M., Nishimura, Kazuo
Equilibria, growth models
ENDOGENOUS FLUCTUATIONS IN THE BARRO-BECKER THEORY OF FERTILITY
Benhabib, Jess, Nishimura, Kazuo
per capita income ; population growth ; capital formation ; fertility
JOINT EXPLOITATION OF A PRODUCTIVE ASSET: A GAME-THEORETIC APPROACH
games ; productivity
GROWTH ACCOUNTING AND EXTERNALITIES
Benhabib, Jess, Jovanovic, Boyan
labour market ; economic growth ; economic models
A VINTAGE CAPITAL MODEL OF INVESTMENT AND GROWTH: THEORY AND EVIDENCE.
Benhabib, Jess, Rustichini, Aldo
investments ; economic equilibrium ; empirical methods ; economic models
EQUILIBRIUM CYCLING WITH SMALL DISCOUNTING: A NOTE
Benhabib, Jess, Rustichini, Aldo
economic growth ; economic equilibrium ; technology
Benhabib, Jess, Rustichini, Aldo
stochastic processes ; growth models ; risk aversion ; game theory
HOMEWORK IN MACROECONOMICS I: BASIC THEORY
Benhabib, Jess, Rogerson, Richard, Wright, Randall
macroeconomics ; economic theory ; household
HOMEWORK IN MACROECONOMICS II: AGGREGATE FLUCTUATIONS
Benhabib, Jess, Rogerson, Richard, Wright, Randall
macroeconomics ; business cycles ; productivity
ENDOGENOUS FERTILITY AND GROWTH
Benhabib, Jess, Nishimura, Kazuo
fertility ; technological change ; children ; schooling ; human resources ; economic growth
VINTAGE CAPITAL, INVESTMENT AND GROWTH
Benhabib, Jess, Rustichini, Aldo
capital ; investments ; economic growth
Social Conflict, Growth and Income Distribution
Benhabib, Jess, Rustichini, Aldo
Wealth ; economic equilibrium ; games ; models
The Aggregate Effects of Monetary Externalities
Models ; money ; economic equilibrium
Social Conflict, Growth and Inequality
Benhabib, Jess, Rustichini, Aldo
Income ; investments ; games ; wealth
Indeterminacy and Increasing Returns
Benhabib, Jess, Farmer, Roger E.A.
Growth rate ; investments ; technology ; enterprises ; business cycles
Growth Accounting with Physical and Human Capital Accumulation
Benhabib, Jess, Spiegel, Mark M.
Production functions ; income ; production factors ; investments ; capital-output ratio
Indeterminacy and Sector-Specific Externalities
Benhabib, Jess, Farmer, Roger E.A.
Indeterminacy, sector-specific externalities, real business cycle model, returns to scale
On Growth and Indeterminacy: Some Theory and Evidence
Multiple equilibria, indeterminacy, growth models, convergence
Indeterminancy and Sunspots with Constant Returns
Benhabib, Jess, Nishimura, Kazuo
We show that indeterminacy can easily arise in multi-sector models that have constant variable returns to scale and very small market imperfections. This is in sharp contrast to models that require...
Indeterminacy and Sector-Specific Externalities
Benhabib, Jess, Farmer, Roger E.A.
Real business cycles, indeterminacy, sunspots
Persistence of Business Cycles in Multisector RBC Models.
Benhabib, Jess, Perli, Roberto, Sakellaris, Plutarchos
In this paper we explore whether the changing composition of output in response to technology shocks can play a significant role in the propagation of shocks over time. For this purpose we study two...
Cross-Country Growth Regressions.
A large literature has identified a variety of "ancillary variables", such as political instability, income distribution, and financial development as important determinants of income growth in...
Benhabib, Jess, Schmitt-Grohe, Stephanie, Uribe, Martin
interest rate feedback rules; zero bound on nominal rates; liquidity traps; multiple equilibria
Indeterminacy, Aggregate Demand, and the Real Business Cycle
We show that under indeterminacy aggregate demand shocks are able to explain not only aspects of actual °uctuations that standard RBC models predict fairly well, but also aspects of actual...
We present a mechanism to analytically generate a double Pareto distribution of wealth in a continuous time OLG model with optimizing agents who have bequest motives, are subject to stochastic...
Homework in Macoreconomics I: Basic Theory (Part I of II)
Jess Benhabib, Randall Wright, Richard Rogerson
This paper argues that the home, or nonmarket, sector is empirically large, whether measured in terms of the time devoted to household production activities or in terms of the value of home produced...
Homework in Macroeconomics: Household Production and Aggregate Fluctuations.
Benhabib, Jess, Rogerson, Richard, Wright, Randall
This paper explores some macroeconomic implications of including household production in an otherwise standard real business cycle model. The authors calibrate the model on the basis of microeconomic...
Backward-Looking Interest-Rate Rules, Interest-Rate Smoothing, and Macroeconomic Instability
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
The existing literature on the stabilizing properties of interest-rate feedback rules has stressed the perils of linking interest rates to forecasts of future inflation. Such rules have been found to...
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
A growing empirical and theoretical literature argues in favor of specifying monetary policy in the form of Taylor-type interest rate feedback rules. That is, rules whereby the nominal interest rate...
Monetary Policy and Multiple Equilibria
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
In this paper, we characterize conditions under which interest rate feedback rules that set the nominal interest rate as an increasing function of the inflation rate induce aggregate instability by...
Jess Benhabib, Stephanie Schmitt-Grohe, Martin Uribe
Since John Taylor's (1993) seminal paper, a large literature has argued that active interest rate feedback rules, that is, rules that respond to increases in inflation with a more than one-for-one...
The distribution of wealth and fiscal policy in economies with finitely lived agents
We study the dynamics of the distribution of overlapping generation economy with finitely lived agents and inter-generational transmission of wealth. Financial markets are incomplete, exposing agents...
A Note on Regime Switching, Monetary Policy, and Multiple Equilibria
When monetary policy is subject to regime switches conditions for determinacy become more complex. Davig and Leeper (2007) and Farmer, Waggoner and Zha (2009a) have studied such conditons. Using some...
Moderate Inflation and the Deflation-Depression Link
JESS BENHABIB, MARK M. SPIEGEL
Recent research has concluded that the historical evidence only provides weak support for the contention that deflation episodes are harmful to economic growth. In this paper, we revisit this...