Crime and the Labor Market in a Search Model with Pairwise-Efficient Separations (2007)
Engelhardt, Bryan, Rocheteau, Guillaume, Rupert, Peter
This paper extends the Pissarides (2000) model of the labor market to include crime and punishment à la Becker (1968). All workers, irrespective of their labor force status can commit crimes and...
Inflation and Unemployment in General Equilibrium (2007)
Rocheteau, Guillaume, Rupert, Peter, Wright, Randall
When labor is indivisible, there exist efficient outcomes with some agents randomly unemployed (Rogerson 1988). We integrate this idea into the modern theory of monetary exchange, where some trade...
The Return to Capital and the Business Cycle (2007)
Gomme, Paul, Ravikumar, B, Rupert, Peter
We measure the return to capital directly from the NIPA and BEA data and examine the return implications of the real business cycle model. We construct a quarterly time series of the after-tax return...
Home Production Meets Time-to-Build (2000)
Paul Gomme, Finn Kydl, Peter Rupert
An innovation in this paper is to introduce a time-to-build technology for the production of market capital into a model with home production. Our main finding is that the two anomalies that have...
Measuring the Rate of Technological Progress in Structures (2000)
Michael Gort, Jeremy Greenwood, Peter Rupert
How much technological progress has there been in structures? An attempt is made to measure this using panel data on the age and rents for buildings. This data is interpreted through the eyes of a...
Estimating substitution elasticities in household production models
Peter Rupert, Richard Rogerson, Randall Wright
Dynamic general equilibrium models that include explicit household production sectors provide a useful framework within which to analyze a variety of macroeconomic issues. However, some implications...
On the political economy of income redistribution and crime
Ayse Imrohoroglu, Antonio Merlo, Peter Rupert
We study a one-sector growth model which is standard except for the presence of an externality in the production function. The set of competitive equilibria is large. It includes constant equilibria,...
On the Political Economy of Income Redistribution and Crime.
Imrohoroglu, Ayse, Merlo, Antonio, Rupert, Peter
This article analyzes a general equilibrium model in which agents choose to specialize in either legitimate or criminal activities. Expenditures on police to apprehend criminals, as well as income...
Home Production Meets Time to Build
Paul Gomme, Finn E. Kydland, Peter Rupert
An innovation in this paper is to introduce a time-to-build technology for the production of market capital into a model with home production. Our main finding is that the two anomalies that have...
The myth of the overworked American
A challenge to the popular presumption that U.S. workers are experiencing declining levels of leisure time, finding that the total hours of work have not changed much over the past decade, but that...
Understanding the determinants of crime
Ayse Imrohoroglu, Antonio Merlo, Peter Rupert
In this paper, we use an overlapping generations model where individuals are allowed to engage in both legitimate market activities and criminal behavior in order to assess the role of certain...
The return to capital and the business cycle
Paul Gomme, B. Ravikumar, Peter Rupert
Real business cycle models have difficulty replicating the volatility of S&P 500 returns. This fact should not be surprising since real business cycle theory suggests that the return to capital...
Understanding the persistence of poverty
Mark E. Schweitzer, Peter Rupert
Millions of U.S. citizens continue to live in poverty within one of the wealthiest and most productive nations in the world. The Federal Reserve Bank of Cleveland's 2006 Annual Report reviews some of...
How Amenities Affect Job and Wage Choices Over the Life Cycle
Job amenities are explicitly included in a model of job choice over the life cycle. The amenities are characterized by an indivisibility--a worker must be present at a job to enjoy its amenities....
Life-cycle income and consumption variability
By all accounts, economic inequality is growing—the rich are getting richer, and the poor are getting poorer. This Economic Commentary explores inequality in income and consumption and asks whether...
What’s really going on in housing markets?
Morris A. Davis, François Ortalo-Magné, Peter Rupert
Most of the public concern about housing markets is based on claims that house prices have increased at historically anomalous rates and that house prices have outpaced incomes. The first claim is...
Crime and the labor market: a search model with optimal contracts
Bryan Engelhardt, Guillaume Rocheteau, Peter Rupert
This paper extends the Pissarides (2000) model of the labor market to include crime and punishment `a la Becker (1968). All workers, irrespective of their labor force status can commit crimes and the...
Crime and the Labor Market in a Search Model with Pairwise-Efficient Separations
Bryan Engelhardt, Guillaume Rocheteau, Peter Rupert
This paper extends the Pissarides (2000) model of the labor market to include crime and punishment à la Becker (1968). All workers, irrespective of their labor force status can commit crimes and the...
Inflation and Unemployment in General Equilibrium
Guillaume Rocheteau, Peter Rupert, Randall Wright
When labor is indivisible, there exist efficient outcomes with some agents randomly unemployed (Rogerson 1988). We integrate this idea into the modern theory of monetary exchange, where some trade...
The Return to Capital and the Business Cycle
Paul Gomme, B Ravikumar, Peter Rupert
We measure the return to capital directly from the NIPA and BEA data and examine the return implications of the real business cycle model. We construct a quarterly time series of the after-tax return...
Christopher Cornwell, Peter Rupert
An empirical investigation of the relationship between marriage and wages, arguing that marriage signals certain unobservable individual characteristics - including ability, honesty, loyalty,...
Earnings, education and experience
Peter Rupert, Mark E. Schweitzer, Eric Severance-Lossin, Erin Turner
Education ; Wages
Accounting for capital consumption and technological progress
Methods currently used to calculate capital consumption, the stock of capital, and the sources of economic growth do not adequately measure the underlying growth in inputs due to technological...
Defining capital in growth models
Michael Gort, Saqib Jafarey, Peter Rupert
This article analyzes the measurement of the capital stock when technological advance is embodied in capital. The source of the problem is that capital is not homogeneous across vintages. Which...
The search-theoretic approach to monetary economics: a primer
Peter Rupert, Martin Schindler, Andrei Shevchenko, Randall Wright
The authors present simple versions of models used in the search-theoretic approach to monetary economics. They discuss results on the existence of monetary equilibria, the potential for multiple...
WHAT ACCOUNTS FOR THE DECLINE IN CRIME?
Ayse Imrohoroglu, Antonio Merlo, Peter Rupert
In this article we analyze recent trends in aggregate property crime rates in the United States. We propose a dynamic equilibrium model that guides our quantitative investigation of the major...
Inflation and Unemployment in General Equilibrium
Guillaume Rocheteau, Peter Rupert, Randall Wright
When labor is indivisible, there exist efficient outcomes with some agents randomly unemployed, as in Rogerson (1988). We integrate this idea into the modern theory of monetary exchange, where some...
Measuring the Rate of Technological Progress in Structures
Michael Gort, Jeremy Greenwood, Peter Rupert
How much technological progress has there been in structures? An attempt is made to measure this using panel data on the age and rents of buildings. The data are interpreted with the help of a...
Mortgage interest deductibility and housing prices
Stephen G. Cecchetti, Peter Rupert
An analysis of how implementing a flat tax on income and ending the deductibility of mortgage interest payments would affect housing prices. The authors show that, to the extent prices decline,...
Is noninflationary growth an oxymoron?
David Altig, Terry Fitzgerald, Peter Rupert
A review of the theoretical and empirical case for disinflationary economic growth, showing that, contrary to popular wisdom, it is quite possible to have a booming economy without an acceleration in...
Okun's law revisited: should we worry about low unemployment?
David Altig, Terry J. Fitzgerald, Peter Rupert
A review of the connection between labor resource utilization and the growth/unemployment correlation summarized by Okun's law, showing that the instability of that relationship, particularly over...
How much of economic growth is fueled by investment-specific technological progress?
Michael Gort, Jeremy Greenwood, Peter Rupert
Discovering how economies grow is vitally important for economists and policymakers alike. This Commentary shows that more than half of U.S. economic growth can be attributed to technological advance...
Growth and the internet: surfing to prosperity?
Do countries that inhibit the quick integration of new technologies pay a price in slower economic growth? This commentary suggests they do. Focusing on the level of Internet use to indicate the...
Infrastructure and the wealth of nations
Economies can’t grow without a sufficiently developed infrastructure, but how deep does the infrastructure have to be to make a difference? The authors take a look at some research from the Fraser...
It wasn’t A Beautiful Mind—the book or the movie—that made John Forbes Nash, Jr., famous. It was his work in game theory, a theory that models strategic interactions between people as games....
Wage and employer changes over the life cycle
Economists have long observed that wages alone do not fully reflect a job’s value—job “amenities” also play a role. Recent empirical studies have confirmed this observation to be the case....
Per capita income growth and disparity in the United States, 1929–2003
Economic theory says the average income of different regions should grow closer over time. Within the United States and across some of the richer countries, evidence suggests this is true.
On the political economy of income redistribution and crime
Ayse Imrohoroglu, Antonio Merlo, Peter Rupert
A general equilibrium analysis of the effects of income redistribution and crime, showing that while expenditures on police protection reduce crime, it is possible for the crime rate to increase with...
Measuring the rate of technological progress in structures
Michael Gort, Jeremy Greenwood, Peter Rupert
An effort to measure technological progress in structures by using panel data on the age and rents of buildings in a vintage capital model, where buildings are replaced at some chosen periodicity. It...
What accounts for the decline in crime?
Ayse Imrohoroglu, Antonio Merlo, Peter Rupert
The authors’ dynamic equilibrium model guides their quantitative investigation of the major determinants of property-crime patterns in the U.S. The model is capable of reproducing the drop in...
Generalized search-theoretic models of monetary exchange
Peter Rupert, Martin Schindler, Randall Wright
This paper extends the literature on search-theoretic models of money in several ways. It provides results for general bargaining parameters, whereas previous papers consider only special cases. It...
Home production meets time-to-build
Paul Gomme, Finn Kydland, Peter Rupert
An innovation in this paper is to introduce a time-to-build technology for the production of market capital into a model with home production. The paper’s main finding is that the two anomalies...
Life cycle wage and job changes
Evidence from the Panel Study of Income Dynamics shows that while the majority of job changers who state they were not fired or laid off choose jobs with wages that are higher than their previous...
How amenities affect job and wage choices over the life cycle
The current wage at a job may not fully reflect the "value" of that job. For example, a job with a low starting wage may be preferred to one with a high starting wage if the growth rate of wages is...
The business cycle and the life cycle
Paul Gomme, Richard Rogerson, Peter Rupert, Randall Wright
The paper documents how cyclical fluctuations in market work vary over the life cycle and then assesses the predictions of a life-cycle version of the growth model for those observations. The...
Theory, measurement, and calibration of macroeconomic models
Calibration has become a standard tool of macroeconomics. This paper extends and refines the calibration methodology along several important dimensions. First, accounting for home production is...
General equilibrium with nonconvexities, sunspots, and money
Guillaume Rocheteau, Peter Rupert, Karl Shell, Randall Wright
We study general equilibrium with nonconvexities. In these economies there exist sunspot equilibria without the usual assumptions needed in convex economies, and they have good welfare properties....
Measuring labor’s share of income
Recent Bureau of Labor Statistics (BLS) data show labor’s share of income at a historic low. This Policy Discussion Paper explores the BLS calculations with an eye to understanding the factors...
Bryan Englehardt, Guillaume Rocheteau, Peter Rupert
The same policies or technological changes that affect the labor market can also affect the extent of criminal activities. For instance, while an increase in unemployment benefits can raise...
The Return to Capital and the Business Cycle
Paul Gomme, B. Ravikumar, Peter Rupert
Real business cycle models have difficulty replicating the volatility of S&P 500 returns. This fact should not be surprising since the RBC theory suggests a measurement of the return of aggregate...
General Equilibrium with NonConvexities, Sunspots and Money
Guillaume Rocheteau, Peter Rupert, Karl Shell, Randall Wright
We study general equilibrium with nonconvexities. In these economies there exist sunspot equilibria without the usual assumptions needed in convex economies, and they have good welfare properties....
BONUS PAYMENTS AND PAY FLEXIBILITY IN JAPAN
Many have suggested that the bonus system in Japan adds flexibility to earnings. This paper tests that hypothesis with data across firm size and worker type. It is shown that the bonus payments are...
Estimating Substitution Elasticities in Household Production Models.
Rupert, Peter, Rogerson, Richard, Wright, Randall
Dynamic general equilibrium models that include explicit household production sectors provide a useful framework within which to analyze a variety of macroeconomic issues. However, some implications...
Unobservable Individual Effects, Marriage and the Earnings of Young Men.
Cornwell, Christopher, Rupert, Peter
While there is compelling evidence that married men earn more than unmarried men, the source of this premium remains unsettled. Using panel data from the National Longitudinal Survey of Young Men,...