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Press Releases

Research Notes–May 2005

Featuring research published in April 2005


Ethical Challenges in a Market Economy
April 11, 2005
Jack Guynn, president and chief executive officer of the Federal Reserve Bank of Atlanta, spoke about ethics at the Scott Symposium on Business Ethics at Bridgewater College.


Hedging, Financing, and Investment Decisions: A Simultaneous Equations Framework
Working Paper 2005-5
Investigating firms’ hedging, financing, and investment decisions, the authors determine that high-growth firms increase their investment, but not their leverage, by hedging and that firms with few investment opportunities increase their leverage with derivatives.

Aggregate Unemployment in Krusell and Smith's Economy: A Note
Working Paper 2005-6
Using data on workers’ flows into and out of employment, unemployment, and not-in-the-labor-force, the author constructs transition probabilities between “employment” and “unemployment” that can be used in the calibration of economies such as Krusell and Smith’s (1998).

Model Confidence Sets for Forecasting Models
Working Paper 2005-7
The authors develop the model confidence set (MCS) to select the “best” forecasting models and construct asymptotic theory and bootstrap methods for the MCS, which they use to choose models to forecast post-oil shock U.S. inflation.

Dollar Declined Slightly in March
In March the average monthly value for the trade-weighted dollar index of 15 major currencies tracked by the Federal Reserve Bank of Atlanta declined 0.8 percent.