Comments and Discussion (2007)
Baily, Martin Neil., Mankiw, N. Gregory.
Brookings Papers on Economic Activity - 2007, 1
Replication data for: Sticky Information in General Equilibrium (2007)
Ricardo Reis, N. Gregory Mankiw
This paper develops and analyzes a general-equilibrium model with sticky information. The only rigidity in goods, labor, and financial markets is that agents are inattentive, sporadically updating...
N. Gregory Mankiw is the Robert M. Beren Professor of Economics, Harvard University, (2006)
N. Gregory Mankiw, James Hines, Donald Marron, David Romer, Timothy Taylor, Michael Waldman, ...
comments. Economists like to strike the pose of a scientist. I know, because I often do it myself. When I teach undergraduates, I very consciously describe the field of economics as a science, so no...
Comments and Discussion (2005)
Mankiw, N. Gregory., Nordhaus, William D.
Brookings Papers on Economic Activity - 2005, 1
The Politics and Economics of Offshore (2005)
N. Gregory Mankiw, Phillip Swagel
www.aei.org/workingpapers
Monetary Policy for Inattentive Economies (2005)
Laurence Ball, N. Gregory Mankiw, Ricardo Reis, Charles Goodhart
This paper is a contribution to the analysis of optimal monetary policy. It begins with a critical assessment of the existing literature, arguing that most work is based on implausible models of...
N. Gregory Mankiw, Phillip Swagel
During the presidential campaign of 2004, no economic issue generated more heat or shed less light than the debate over offshore outsourcing. This fact was probably apparent at the time to any...
Replication data for: Monetary Policy for Inattentive Economies (2005)
Ricardo Reis, Laurence Ball, N. Gregory Mankiw
This paper is a contribution to the analysis of optimal monetary policy. It begins with a critical assessment of the existing literature, arguing that most work is based on implausible models of...
The U.S. economy is now on a sound footing for sustained expansion. This is a remarkable state of affairs in light of the powerful contractionary forces that have been at work since early 2000 -- the...
The U.S. economy is now on a sound footing for sustained expansion. This is a remarkable state of affairs in light of the powerful contractionary forces that have been at work since early 2000 -- the...
The U.S. economy is now on a sound footing for sustained expansion. This is a remarkable state of affairs in light of the powerful contractionary forces that have been at work since early 2000 -- the...
The U.S. economy is now on a sound footing for sustained expansion. This is a remarkable state of affairs in light of the powerful contractionary forces that have been at work since early 2000 -- the...
Jens Hilscher, Yves Nosbusch, N. Gregory Mankiw, Gregory Connor, Darrell Duffie, Nicola Fuchs-schündeln, ...
and discussions. We also thank Timothy Callen and James Morsink at the IMF, Gonca Okur at the World Bank, Carmen Reinhart, and Alvin Ying at J.P. Morgan for providing us with data and Pavel...
Replication data for: What Measure of Inflation Should a Central Bank Target? (2003)
Ricardo Reis, N. Gregory Mankiw
This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of the inflation rate the central bank should use if it wants to maximize economic...
Replication data for: Disagreement about Inflation Expectations (2003)
Ricardo Reis, N. Gregory Mankiw, Justin Wolfers
Analyzing 50 years of inflation expectations data from several sources, we document substantial disagreement among both consumers and professional economists about expected future inflation....
Principios de economía / N. Gregory Mankiw (2002)
Mankiw, N. Gregory, Rabasco Espáriz, Esther, Toharía Cortés, Luis
Traducción de: Principles of economics
The NAIRU in theory and practice (2002)
Laurence Ball, N. Gregory Mankiw, Gergana Trainor
We are grateful for research assistance from Robert Tchaidze and
Ricardo Reis, N. Gregory Mankiw
This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared to the commonly used sticky-price model, this...
Comments and Discussion (2001)
Mankiw, N. Gregory., Willen, Paul.
Brookings Papers on Economic Activity - 2001, 2
N. Gregory Mankiw, Ricardo Reis, N. Gregory Mankiw, Ricardo Reis, N. Gregory, Mankiw Ricardo Reis
the LSE for their hospitality during part of this research. The views expressed herein are those of the authors and not necessarily those of the National
Principios de macroeconomía / N. Gregory Mankiw (1998)
"En este libro se incluyen los trece últimos capítulos del libro Principios de Economía de N. Gregory Mankiw (McGraw Hill, Madrid, 1998)"
Macroeconomía / N.G. Mankiw ; tr. por María Esther Rabasco y Luis Toharia. (1997)
Traducción de: Macroeconomics
Macroeconomía : N. Gregory Mankiw (1997)
Mankiw, N. Gregory, Ventura, Eva
Traducción de: Macroeconomics
Mankiw, N. Gregory, Romer, David
Incluye bibliografía e índice
The worldwide change in the behavior of interest rates and prices in 1914 (1988)
Barsky, Robert B., Mankiw, N. Gregory, Miron, Jeffrey A., Weill, David N.
This paper evaluates the role of the destruction of the gold standard and the founding of the Federal Reserve, both of which occured in 1914, in contributing to observed changes in the behavior of...
News or noise : an analysis of GNP revisions / by N. Gregory Mankiw and Matthew D. Shapiro (1986)
Mankiw, N. Gregory, Shapiro, Matthew D
Incluye bibliografía
Essays on consumption /--by Nicholas Gregory Mankiw. (1984)
Supervised by Stanley Fischer.
Teaching the Principles of Economics
In this brief essay, I describe my approach to the principles course. I emphasize three themes. First, in teaching microeconomics, the tools of welfare economics should play a larger role than they...
Pervasive Stickiness (Expanded Version)
N. Gregory Mankiw, Ricardo Reis
This paper explores a macroeconomic model of the business cycle in which stickiness of information is pervasive. We start from a familiar benchmark classical model and add to it the assumption that...
Laurence Ball, N. Gregory Mankiw
Macroeconomists are divided on the best way to explain short-run economic fluctuations. This paper presents the case for traditional theories based on short-run price stickiness. It discusses the...
Dynamic Scoring: A Back-of-the-Envelope Guide
N. Gregory Mankiw, Matthew Weinzierl
This paper uses the neoclassical growth model to examine the extent to which a tax cut pays for itself through higher economic growth. The model yields simple expressions for the steady-state...
Sticky information versus sticky prices: a proposal to replace the New-Keynesian Phillips Curve
N. Gregory Mankiw, Ricardo Reis
This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared to the commonly used sticky-price model, this...
Trends, Random Walks, and Tests of the Permanent Income Hypothesis
Matthew D. Shapiro, N. Gregory Mankiw
Recent studies find that consumption is excessively sensitive to income. These studies assume that income is stationary around a deterministic trend. The data, however, do not reject the hypothesis...
What Measure of Inflation Should a Central Bank Target?
N. Gregory Mankiw, Ricardo Reis
This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of the inflation rate the central bank should use if it wants to maximize economic...
Laurence Ball, N. Gregory Mankiw
This paper examines the optimal allocation of risk in an overlapping-generations economy. It compares the allocation of risk the economy reaches naturally to the allocation that would be reached if...
Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve
N. Gregory Mankiw, Ricardo Reis
This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared to the commonly used sticky-price model, this...
U. S. Monetary Policy During the 1990s
This paper discusses the conduct and performance of U. S. monetary policy during the 1990s, comparing it to policy during the previous several decades. It reaches four broad conclusions. First, the...
Sticky Information: A Model of Monetary Nonneutrality and Structural Slumps
N. Gregory Mankiw, Ricardo Reis
This paper explores a model of wage adjustment based on the assumption that information disseminates slowly throughout the population of wage setters. This informational frictional yields interesting...
The NAIRU in Theory and Practice
Laurence Ball, N. Gregory Mankiw
This paper discusses the NAIRU - the non-accelerating inflation rate unemployment. It first considers the role of the NAIRU concept in business cycle theory, arguing that this concept is implicit in...
What Measure of Inflation Should a Central Bank Target?
N. Gregory Mankiw, Ricardo Reis
This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of the inflation rate the central bank should use if it wants to maximize economic...
Monetary Policy for Inattentive Economies
Laurence Ball, N. Gregory Mankiw, Ricardo Reis
This paper is a contribution to the analysis of optimal monetary policy. It begins with a critical assessment of the existing literature, arguing that most work is based on implausible models of...
Disagreement about Inflation Expectations
N. Gregory Mankiw, Ricardo Reis, Justin Wolfers
Analyzing 50 years of inflation expectations data from several sources, we document substantial disagreement among both consumers and professional economists about expected future inflation....
Dynamic Scoring: A Back-of-the-Envelope Guide
N. Gregory Mankiw, Matthew Weinzierl
This paper uses the neoclassical growth model to examine the extent to which a tax cut pays for itself through higher economic growth. The model yields simple expressions for the steady-state...
This paper discusses five questions the incoming chairman of the Federal Reserve must ponder as he assumes his new post. How important are monetary rules? Should the Fed adopt inflation targeting?...
N. Gregory Mankiw, Ricardo Reis
This paper explores a macroeconomic model of the business cycle in which stickiness of information is pervasive. We start from a familiar benchmark classical model and add to it the assumption that...
The Politics and Economics of Offshore Outsourcing
N. Gregory Mankiw, Phillip Swagel
This paper reviews the political uproar over offshore outsourcing connected with the release of the Economic Report of the President (ERP) in February 2004, examines the differing ways in which...
The Macroeconomist as Scientist and Engineer
This essay offers a brief history of macroeconomics, together with an evaluation of what has been learned over the past several decades. It is based on the premise that the field has evolved through...
Sticky Information in General Equilibrium
N. Gregory Mankiw, Ricardo Reis
This paper develops and analyzes a general-equilibrium model with sticky information. The only rigidity in goods, labor, and financial markets is that agents are inattentive, sporadically updating...
Consumer Durables and the Real Interest Rate
One important channel through which real interest rates affect aggregate demand is consumer expenditure on durable goods. This paper examines empirically the link between interest rates and consumer...
Aggregation and Stabilization Policy in a Multi-Contract Economy
Alan S. Blinder, N. Gregory Mankiw
This paper presents a model of a multi-sector economy in which each sector is characterized by a different type of wage or price stickiness. The various sectors experience the same exogenous shocks...
Are Tax Cuts Really Expansionary?
N. Gregory Mankiw, Lawrence H. Summers
In this paper, we re-examine the standard analysis of the short-run effect of a personal tax cut. If consumer spending generates more money demand than other components of GNP, then tax cuts may, by...
Government Purchases and Real Interest Rates
This paper examines the dynamic impact of government purchases in a simple general equilibrium model with both durable and non-durable consumer goods as well as productive capital. The model...
The Adjustment of Expectations to a Change in Regime: A Study of the Founding of the Federal Reserve
N. Gregory Mankiw, Jeffrey A. Miron, David N. Weil
The founding of the Federal Reserve System in 1914 led to a substantial change in the behavior of nominal interest rates. We examine the timing of this change and the speed with which it was...
Assessing Dynamic Efficiency: Theory and Evidence
Andrew B. Abel, N. Gregory Mankiw, Lawrence H. Summers, Richard J. Zeckhauser
The issue of dynamic efficiency is central to analyses of capital accumulation and economic growth. Yet the question of what operating characteristics of an economy subject to productivity shocks...
Imperfect Competition and the Keynesian Cross
This paper presents a simple general equilibrium model in which the only non-Walrasian feature is imperfect competition in the goods market. The model is shown to exhibit various Keynesian...
Permanent Income, Current Income, and Consumption
John Y. Campbell, N. Gregory Mankiw
This paper reexamines the consistency of the permanent income hypothesis with aggregate, post-war, United States data. The permanent income hypothesis is nested within a more general model in which a...
Recent Developments in Macroeconomics: A Very Quick Refresher Course
This paper outlines the major developments in macroeconomics over the past two decades. It examines the reasons for the breakdown in the consensus view of the 1960s and how this breakdown has guided...
Consumption: Beyond Certainty Equivalence
Olivier J. Blanchard, N. Gregory Mankiw
This paper discusses the recent research on the consumption function that has attempted to relax the assumption of certainty equivalence. While there remain many open questions, both theoretical and...
International Evidence on the Persistence of Economic Fluctuations
John Y. Campbell, N. Gregory Mankiw
This paper presents new evidence on the persistence of fluctuations in real GNP. Two measures of persistence are estimated non-parametrically using post-war quarterly data from Canada, France,...
Are Output Fluctuations Transitory?
John Y. Campbell, N. Gregory Mankiw
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...
Real Business Cycles: A New Keynesian Perspective
This paper is a critique of the latest new classical theory of economic fluctuations. According to this theory, the business cycle is the natural and efficient response of the economy to exogenous...
Relative-Price Changes as Aggregate Supply Shocks
Laurence Ball, N. Gregory Mankiw
This paper proposes a theory of supply shocks, or shifts in the short-run Phillips curve, based on relative-price changes and frictions in nominal price adjustment. When price adjustment is costly,...
Stock Market Forecastability and Volatility: A Statistical Appraisal
N. Gregory Mankiw, David H. Romer, Matthew D. Shapiro
This paper presents and implements statistical tests of stock market forecastability and volatility that are immune from the severe statistical problems of earlier tests. Although the null hypothesis...
Consumption, Income, and Interest Rates: Reinterpreting the Time Series Evidence
John Y. Campbell, N. Gregory Mankiw
This paper proposes that the time-series data on consumption, income, and interest rates are best viewed as generated not by a single representative consumer but by two groups of consumers. Half the...
A Quick Refresher Course in Macroeconomics
This paper presents a non-technical discussion of some of the important developments in macroeconomics over the past twenty years. It considers three broad catagories of research. First, it discusses...
The Equity Premium and the Concentration of Aggregate Shocks
This paper examines an economy in which aggregate shocks are not dispersed equally throughout the population. Instead, while these shocks affect all individuals ex ante, they are concentrated among a...
Ricardian Consumers With Keynesian Propensities
Robert B. Barsky, N. Gregory Mankiw, Stephen P. Zeldes
In this paper, we examine Ricardian equivalence of debt and tax finance in a world in which taxes are not lump-sum but are levied on risky labor income. First, we show that the marginal propensity to...
The Consumption of Stockholders and Non-Stockholders
N. Gregory Mankiw, Stephen P. Zeldes
Only one-fourth of U.S. families own stock. This paper examines whether the consumption of stockholders differs from the consumption of non-stockholders and whether these differences help explain the...
Capital Mobility in Neoclassical Models of Growth
Robert J. Barro, N. Gregory Mankiw, Xavier Sala-i-Martin
The empirical evidence reveals conditional convergence in the sense that economies grow faster per capita if they start further below their steady-state positions. For a homogeneous group of...
Optimal Advice for Monetary Policy
Susanto Basu, Miles S. Kimball, N. Gregory Mankiw, David N. Weil
This paper addresses the issue of how to give optimal advice about monetary policy when it is known that the advice may not be heeded. We examine a simple macroeconomic model in which monetary policy...
Permanent and Transitory Components in Macroeconomic Fluctuations
John Y. Campbell, N. Gregory Mankiw
Fluctuations in real GNP have traditionally been viewed as transitory deviations from a deterministic time trend. The purpose of this paper is to review some of the recent developments that have led...
Sticky Information in General Equilibrium
N. Gregory Mankiw, Ricardo Reis
This paper develops and analyzes a general-equilibrium model with sticky information. The only rigidity in goods, labor, and financial markets is that agents are inattentive, sporadically updating...
Do Long-Term Interest Rates Overreact to Short-Term Interest Rates?
N. Gregory Mankiw, Lawrence H. Summers
macroeconomics, interest rates, short-term, long-term
The Term Structure of Interest Rates Revisited
macroeconomics, interest rates, term structure
The New Keynsesian Economics and the Output-Inflation Trade-off
LAURENCE BALL, N. GREGORY MANKIW, DAVID ROMER
macroeconomics, New Keynsesian Economics, Output-Inflation Trade-off
Ricardian Consumers with Keynesian Propensities.
Barsky, Robert B, Mankiw, N Gregory, Zeldes, Stephen P
This paper examines Ricardian equivalence in a world in which taxes arenot lump sum, but are levied on risky labor income. It shows that themarginal propensity to consume out of a tax cut, coupled...
Douglas W. Elmendorf, N. Gregory Mankiw
This paper surveys the literature on the macroeconomic effects of government debt. It begins by discussing the data on debt and deficits, including the historical time series, measurement issues, and...
Pervasive Stickiness (Expanded Version)
Mankiw, N Gregory, Reis, Ricardo
This paper explores a macroeconomic model of the business cycle in which stickiness of information is pervasive. We start from a familiar benchmark classical model and add to it the assumption that...
The Inexorable and Mysterious Tradeoff between Inflation and Unemployment.
This paper discusses the short-run tradeoff between inflation and unemployment. Although this tradeoff remains a necessary building block of business cycle theory, economists have yet to provide a...
Asymmetric Price Adjustment and Economic Fluctuations.
Ball, Laurence, Mankiw, N Gregory
This paper considers a possible explanation for asymmetric adjustment of nominal prices. The authors present a menu-cost model in which positive trend inflation causes firms' relative prices to...
Monetary Policy for Inattentive Economies
Laurence Ball, N Gregory Mankiw, Ricardo Reis
This paper is a contribution to the analysis of optimal monetary policy. It begins with a critical assessment of the existing literature, arguing that most work is based on implausible models of...
Laurence Ball, N Gregory Mankiw
This paper examines the optimal allocation of risk in an overlapping-generations economy It compares the allocation of risk the economy reaches naturally to the allocation that would be reached if...
Ball, Laurence, Elmendorf, Douglas W, Mankiw, N Gregory
The historical behavior of interest rates and growth rates in U.S. data suggests that the government can, with a high probability, run temporary budget deficits and then roll over the resulting...
Recent Developments in Macroeconomics: A Very Quick Refresher Course.
This paper outlines the major developments in macroeconomics over the past two decades. It examines the reasons for the breakdown in the consensus view of the 1960s and how this breakdown has guided...
Money Demand and the Effects of Fiscal Policies.
Mankiw, N Gregory, Summers, Lawrence H
This paper reexamines the choice of the scale variable in the money-demand function. A variety of evidence suggests that consumer spending is a better scale variable than GNP. Changing the money-...
The founding of the Fed and the behavior of interest rates : What can be learned from small samples?
The New Keynsesian Economics and the Output-Inflation Trade-off
LAURENCE BALL, N. GREGORY MANKIW, DAVID ROMER
macroeconomics, New Keynsesian Economics, Output-Inflation Trade-off
Do Long-Term Interest Rates Overreact to Short-Term Interest Rates?
N. Gregory Mankiw, Lawrence H. Summers
macroeconomics, interest rates, short-term, long-term
The Term Structure of Interest Rates Revisited
macroeconomics, interest rates, term structure
The New Keynsesian Economics and the Output-Inflation Trade-off
LAURENCE BALL, N. GREGORY MANKIW, DAVID ROMER
macroeconomics, New Keynsesian Economics, Output-Inflation Trade-off
Do We Reject Too Often? Small Sample Bias in Tests of Rational Expectations
N. Gregory Mankiw, Matthew D. Shapiro
We examine the small sample properties of tests of rational expectations models. We show using Monte Carlo experiments that these tests can be extremely biased toward rejection for sample sizes...
Risk and Return: Consumption Beta Versus Market Beta
Matthew D. Shapiro, N. Gregory Mankiw
Much recent work emphasizes the joint nature of the consumption decision and the portfolio allocation decision. In this paper, we compare two formulations of the Capital Asset Pricing Model. The...
Teaching the Principles of Economics
In this brief essay, I describe my approach to the principles course. I emphasize three themes. First, in teaching microeconomics, the tools of welfare economics should play a larger role than they...
Stock Market Forecastability and Volatility: A Statistical Appraisal.
Mankiw, N Gregory, Romer, David, Shapiro, Matthew D
This paper presents and implements statistical tests of stock-market forecastability and volatility that are immune from the severe statistical problems of earlier tests. It finds that although the...
Canner, Niko, Mankiw, N Gregory, Weil, David N
This paper examines popular advice on portfolio allocation among cash, bonds, and stocks. It documents that this advice is inconsistent with the mutual-fund separation theorem, which states that all...
Capital Mobility in Neoclassical Models of Growth.
Barro, Robert J, Mankiw, N Gregory
The neoclassical growth model accords with empirical evidence on convergence if capital is viewed broadly to include human investments, so that diminishing returns to capital set in slowly, and if...
Mankiw, N Gregory, Miron, Jeffrey A, Weil, David N
The founding of the Federal Reserve System in 1914 led to a substantial change in the behavior of nominal interest rates. The authors examine the timing of this change and the speed with which it was...
The NAIRU in Theory and Practice
Laurence Ball, N. Gregory Mankiw
This paper discusses the NAIRU--the non-accelerating inflation rate of unemployment. It first considers the role of the NAIRU concept in business cycle theory, arguing that this concept is implicit...
The Macroeconomist as Scientist and Engineer
The subfield of macroeconomics was born, not as a science, but more as a type of engineering. The problem that gave birth to our field was the Great Depression. God put macroeconomists on earth not...
Permanent Income, Current Income, and Consumption.
Campbell, John Y, Mankiw, N Gregory
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...
The worldwide change in the behavior of interest rates and prices in 1914
Barsky, Robert B., Mankiw, N. Gregory, Miron, Jeffrey A., Weill, David N.
Commentary : separating the business cycle from other economic fluctuations
Greenspan, Alan ; Monetary policy ; Business cycles
Relative-price changes as aggregate supply shocks
Laurence Ball, N. Gregory Mankiw
Inflation (Finance) ; Prices ; Supply and demand
Free Entry and Social Inefficiency
N. Gregory Mankiw, Michael D. Whinston
Previous articles have noted the possibility of socially inefficient levels of entry in markets in which firms must incur fixed set-up costs upon entry. This article identifies the fundamental and...
Douglas W. Elmendorf, N. Gregory Mankiw
This paper surveys the literature on the macroeconomic effects of government debt. It begins by discussing the data on debt and deficits, including the historical time series, measurement issues, and...
Capital Mobility in Neoclassical Models of Growth
Barro, Robert J., Mankiw, N Gregory
The neoclassical growth model accords with empirical evidence on convergence if capital is viewed broadly to include human investments, so that diminishing returns to capital set in slowly, and if...
Sticky Information Versus Sticky Prices: A Proposal To Replace The New Keynesian Phillips Curve
N. Gregory Mankiw, Ricardo Reis
This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared with the commonly used sticky-price model,...
A Contribution to the Empirics of Economic Growth.
Mankiw, N Gregory, Romer, David, Weil, David N
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...
Relative-Price Changes as Aggregate Supply Shocks.
Ball, Laurence, Mankiw, N Gregory
This paper proposes a theory of supply shocks, or shifts in the short-run Phillips curve, based on relative-price changes and frictions in nominal price adjustment. When price adjustment is costly,...
Laurence Ball, N. Gregory Mankiw
© 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technolog
Disagreement about Inflation Expectations
N. Gregory Mankiw, Justin Wolfers
Analyzing 50 years of inflation expectations data from several sources, we document substantial disagreement among both consumers and professional economists about expected future inflation....
The U.S. economy is now on a sound footing for sustained expansion. This is a remarkable state of affairs in light of the powerful contractionary forces that have been at work since early 2000 -- the...
Disagreement about Inflation Expectations
Mankiw, N. Gregory, Reis, Ricardo, Wolfers, Justin
Analyzing 50 years of inflation expectations data from several sources, we document substantial disagreement among both consumers and professional economists about expected future inflation....
The Changing Behavior of the Term Structure of Interest Rates
N. Gregory Mankiw, Jeffrey A. Miron
We reexamine the expectations theory of the term structure using data at the short end of the maturity spectrum. We find that prior to the founding ofthe Federal Reserve System in 1915, the spread...
Intertemporal Substitution in Macroeconomics
N. Gregory Mankiw, Julio J. Rotemberg, Lawrence H. Summers
Modern neoclassical theories of the business cycle posit that aggregate fluctuations in consumption and employment are the consequence of dynamic optimizing behavior by economic agents who face no...
News or Noise? An Analysis of GNP Revisions
N. Gregory Mankiw, Matthew D. Shapiro
This paper studies the nature of the errors in preliminary GNP data, It first documents that these errors are large. For example, suppose the prelimimary estimate indicates that real GNP did not...
The Allocation of Credit and Financial Collapse
This paper examines the allocation of credit in a market in which borrowers have greater information concerning their own riskiness than do lenders. It illustrates (1) the allocation of credit is...
Risk and Return: Consumption versus Market Beta
N. Gregory Mankiw, Matthew D. Shapiro
The interaction between the macroeconomy and asset markets is central to a variety of modern theories of the business cycle. Much recentwork emphasizes the joint nature of the consumption decision...
Do Long-Term Interest Rates Overreact to Short-Term Interest Rates?
N. Gregory Mankiw, Lawrence H. Summers
This paper examines the hypothesis that financial markets are myopic by studying the term structure of interest rates. White rejecting decisively the traditional expectations hypothesis regarding the...
The Optimal Collection of Seigniorage: Theory and Evidence
This paper presents and tests a positive theory of monetary and fiscal policy. The government chooses the rates of taxation and inflation to minimize the present value of the social cost of raising...
Consumer Spending and the After-Tax Real Interest Rate
This paper examines the interaction between consumer durable goods and consumer non-durable goods in determining the responsiveness of total expenditure to the after-tax real interest rate. The...
The Worldwide Change in the Behavior of Interest Rates and Prices in 1914
Robert B. Barsky, N. Gregory Mankiw, Jeffrey A. Miron, David N. Weil
This paper evaluates the role of the destruction of the gold standard and the founding of the Federal Reserve, both of which occurred in 1914, in contributing to observed changes in the behavior of...
Precautionary Saving and the Timing of Taxes
Miles S. Kimball, N. Gregory Mankiw
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...
The Baby Boom, The Baby Bust, and the Housing Market
N. Gregory Mankiw, David N. Weil
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...
Should The Fed Smooth Interest Rates? The Case of Seasonal Monetary Policy
N. Gregory Mankiw, Jeffrey A. Miron
This paper examines the choice of monetary policy in response to seasonal fluctuations in the economy. It discusses the costs and benefits of smoothing interest rates over the seasons, which has been...
A Contribution to the Empirics of Economic Growth
N. Gregory Mankiw, David Romer, David N. Weil
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...
The Reincarnation of Keynesian Economics
This paper discusses the reemergence of Keynesian economics during the past decade. It highlights the substantial differences between new Keynesian economics and the convictions of early Keynesians....
Asymmetric Price Adjustment and Economic Fluctuations
Laurence Ball, N. Gregory Mankiw
This paper considers a possible explanation for asymmetric adjustment of nominal prices. We present a menu-cost model in which positive trend inflation causes firms' relative prices to decline...
Niko Canner, N. Gregory Mankiw, David N. Weil
This paper examines popular advice on portfolio allocation among cash, bonds, and stocks. It documents that this advice is inconsistent with the mutual-fund separation theorem, which states that all...
Robert E. Hall, N. Gregory Mankiw
This paper discusses nominal income targeting as a possible rule for the conduct of monetary policy. We begin by discussing why a rule for monetary policy may be desirable and the characteristics...
Laurence Ball, Douglas W. Elmendorf, N. Gregory Mankiw
The historical behavior of interest rates and growth rates in U.S. data suggests that the government can, with a high probability, run temporary budget deficits and then roll over the resulting...
Laurence Ball, N. Gregory Mankiw
This paper discusses the effects of budget deficits on the economy in four steps. First, it reviews standard theory about how budget deficits influence saving, investment, the trade balance, interest...
Stock Market Yields and the Pricing of Municipal Bonds
N. Gregory Mankiw, James M. Poterba
This paper proposes an alternative to the traditional model for explaining the spread between taxable and tax-exempt bond yields. This alternative model is a special case of a general class of...
Douglas W. Elmendorf, N. Gregory Mankiw
This paper surveys the literature on the macroeconomic effects of government debt. It begins by discussing the data on debt and deficits, including the historical time series, measurement issues, and...
The Savers-Spenders Theory of Fiscal Policy
The macroeconomic analysis of fiscal policy is usually based on one of two canonical models--the Barro-Ramsey model of infinitely-lived families or the Diamond-Samuelson model of overlapping...
The Inexorable and Mysterious Tradeoff Between Inflation and Unemployment
This paper discusses the short-run tradeoff between inflation and unemployment. Although this tradeoff remains a necessary building block of business cycle theory, economists have yet to provide a...
Laurence Ball, N. Gregory Mankiw
This paper examines the optimal allocation of risk in an overlapping-generations economy. It compares the allocation of risk the economy reaches naturally to the allocation that would be reached if...
Sticky Information Versus Sticky Prices: A Proposal to Replace the New Keynesian Phillips Curve
N. Gregory Mankiw, Ricardo Reis
This paper examines a model of dynamic price adjustment based on the assumption that information disseminates slowly throughout the population. Compared to the commonly used sticky-price model, this...
U.S. Monetary Policy During the 1990s
This paper discusses the conduct and performance of U.S. monetary policy during the 1990s, comparing it to policy during the previous several decades. It reaches four broad conclusions. First, the...
Sticky Information: A Model of Monetary Nonneutrality and Structural Slumps
N. Gregory Mankiw, Ricardo Reis
This paper explores a model of wage adjustment based on the assumption that information disseminates slowly throughout the population of wage setters. This informational frictional yields interesting...
The NAIRU in Theory and Practice
Laurence Ball, N. Gregory Mankiw
This paper discusses the NAIRU -- the non-accelerating inflation rate of unemployment. It first considers the role of the NAIRU concept in business cycle theory, arguing that this concept is implicit...
What Measure of Inflation Should a Central Bank Target?
N. Gregory Mankiw, Ricardo Reis
This paper assumes that a central bank commits itself to maintaining an inflation target and then asks what measure of the inflation rate the central bank should use if it wants to maximize economic...
Monetary Policy for Inattentive Economies
Laurence Ball, N. Gregory Mankiw, Ricardo Reis
This paper is a contribution to the analysis of optimal monetary policy. It begins with a critical assessment of the existing literature, arguing that most work is based on implausible models of...
Disagreement about Inflation Expectations
N. Gregory Mankiw, Ricardo Reis, Justin Wolfers
Analyzing 50 years of inflation expectations data from several sources, we document substantial disagreement among both consumers and professional economists about expected future inflation....
The Macroeconomist as Scientist and Engineer
This essay offers a brief history of macroeconomics, together with an evaluation of what has been learned over the past several decades. It is based on the premise that the field has evolved through...
The Politics and Economics of Offshore Outsourcing
N. Gregory Mankiw, Phillip Swagel
This paper reviews the political uproar over offshore outsourcing connected with the release of the Economic Report of the President (ERP) in February 2004, examines the differing ways in which...
Do We Reject Too Often? Small Sample Properties of Tests of Rational Expectations Models
N. Gregory Mankiw, Matthew D. Shapiro
We examine the small sample properties of tests of rational expectations models. We show using Monte Carlo experiments that the asymptotic distribution of test statistics can be extremely misleading...
Precautionary Saving and the Timing of Taxes.
Kimball, Miles S, Mankiw, N Gregory
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...
Government Purchases and Real Interest Rates.
This paper examines the dynamic impact of government purchases in a simple general equilibrium model with both durable and nondurable consumer goods as well as productive capital. The model generates...
Laurence Ball, N. Gregory Mankiw
This paper examines the optimal allocation of risk in an overlapping-generations economy. It compares the allocation of risk the economy reaches naturally to the allocation that would be reached if...
New Keynesian Economics - Vol. 1: Imperfect Competition and Sticky Prices
N. Gregory Mankiw, David Romer
These two volumes bring together a set of important essays that represent a "new Keynesian" perspective in economics today. This recent work shows how the Keynesian approach to economic fluctuations...
New Keynesian Economics - Vol. 2: Coordination Failures and Real Rigidities
N. Gregory Mankiw, David Romer
These two volumes bring together a set of important essays that represent a "new Keynesian" perspective in economics today. This recent work shows how the Keynesian approach to economic fluctuations...
Smart Taxes: An Open Invitation to Join the Pigou Club
Many economists favor higher taxes on energy-related products such as gasoline, while the general public is more skeptical. This essay, based on a talk given at the March 2008 meeting of the Eastern...
The U.S. economy is now on a sound footing for sustained expansion. This is a remarkable state of affairs in light of the powerful contractionary forces that have been at work since early 2000 -- the...
Laurence Ball, N. Gregory Mankiw
This paper examines the optimal allocation of risk in an overlapping-generations economy. It compares the allocation of risk the economy reaches naturally to the allocation that would be reached if...
Panel discussion: understanding price determination: where are we now? where should we be going?
N. Gregory Mankiw, Michael Woodford
Inflation (Finance) ; Econometric models
Optimal Taxation in Theory and Practice
N. Gregory Mankiw, Matthew C. Weinzierl, Danny Yagan
We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax policy. As recommended by theory, top marginal income tax rates have declined,...
The Optimal Taxation of Height: A Case Study of Utilitarian Income Redistribution
N. Gregory Mankiw, Matthew C. Weinzierl
Should the income tax include a credit for short taxpayers and a surcharge for tall ones? The standard Utilitarian framework for tax analysis answers this question in the affirmative. Moreover, a...
Optimal Taxation in Theory and Practice
N. Gregory Mankiw, Matthew Weinzierl, Danny Yagan
We highlight and explain eight lessons from optimal tax theory and compare them to the last few decades of OECD tax policy. As recommended by theory, top marginal income tax rates have declined,...
The Optimal Taxation of Height: A Case Study of Utilitarian Income Redistribution
N. Gregory Mankiw, Matthew Weinzierl
Should the income tax include a credit for short taxpayers and a surcharge for tall ones? The standard Utilitarian framework for tax analysis answers this question in the affirmative. Moreover, a...
The U.S. economy is now on a sound footing for sustained expansion. This is a remarkable state of affairs in light of the powerful contractionary forces that have been at work since early 2000 —...
Optimal Taxation in Theory and Practice
N. Gregory Mankiw, Matthew Weinzierl, Danny Yagan
The optimal design of a tax system is a topic that has long fascinated economic theorists and flummoxed economic policymakers. This paper explores the interplay between tax theory and tax policy. It...