Working Papers - FRB Atlanta http://www.frbatlanta.org/rss/ Several series of papers presenting the scholarly research of Atlanta Fed staff economists and visiting scholars. Community Affairs discussion papers address topical issues in community development. en-us http://www.frbatlanta.org/ Atlanta Fed Logo http://www.frbatlanta.org/images/rss-logo.gif http://www.frbatlanta.org/rss/ Perturbation Methods for Markov-Switching DSGE Models http://www.frbatlanta.org//pubs/wp/13_01.cfm Mon, 18 Mar 2013 00:03:00 EST Andrew Foerster, Juan Rubio-Ramirez, Daniel F. Waggoner, and Tao Zha. Working Paper 2013-1 (March). The authors develop a methodology for constructing approximations to Markov-switching models and identify the bottleneck of obtaining all approximated solutions. Application to different models illustrates its feasibility and practicality. Housing Wealth and Wage Bargaining http://www.frbatlanta.org//pubs/wp/12_20.cfm Tue, 18 Dec 2012 00:12:00 EST Chris Cunningham and Robert R. Reed. Working Paper 2012-20. December 2012. Examining the relationship between housing equity and wage earnings and using data from the American Housing Survey, the authors show that workers with underwater mortgages who fear default will settle for lower wages. Home Production Technology and Time Allocation: Empirics, Theory, and Implications http://www.frbatlanta.org//pubs/wp/12_19.cfm Tue, 18 Dec 2012 00:12:00 EST Lei Fang and Guozhong Zhu. Working Paper 2012-19. December 2012. Using a model of time allocation that emphasizes the role of home production technology, the authors study the effects of proportional tax and lump-sum transfer on time allocation and labor supply. Analytical Solution for the Constrained Hansen-Jagannathan Distance under Multivariate Ellipticity http://www.frbatlanta.org//pubs/wp/12_18.cfm Tue, 06 Nov 2012 00:11:00 EST Nikolay Gospodinov, Raymond Kan, and Cesare Robotti. Working Paper 2012-18 (November). Building on the seminal work of Hansen and Jagannathan (1997), the authors analyze the benefits and costs of using the HJ-distance with a no-arbitrage constraint to rank asset pricing models. Robust Inference in Linear Asset Pricing Models http://www.frbatlanta.org//pubs/wp/12_17.cfm Tue, 06 Nov 2012 00:11:00 EST Nikolay Gospodinov, Raymond Kan, and Cesare Robotti. Working Paper 2012-17 (November). Using a novel model selection procedure that is robust to fixed misspecification and weak identification, the authors find that only the market factor and the book-to-market factor of Fama and French (1993) are important in explaining the cross-sectional differences in U.S. equity returns. Wages and Unemployment across Business Cycles: A High-Frequency Investigation http://www.frbatlanta.org//pubs/wp/12_16.cfm Wed, 31 Oct 2012 00:10:00 EST Lei Fang and Pedro Silos. Working Paper 2012-16 (October). Investigating the change in wages associated with a spell of unemployment, the authors find that the degree of wage rigidity varies across recessions; wage changes pre- and post-unemployment are sometimes procyclical and sometimes countercyclical. Comparative Advantage and Risk Premia in Labor Markets http://www.frbatlanta.org//pubs/wp/12_15.cfm Mon, 29 Oct 2012 00:10:00 EST German Cubas and Pedro Silos. Working Paper 2012-15 (October). Examining the association between earnings risk and the level of earnings across 21 industries, the authors find that the positive association between permanent risk and earnings is compensation for risk, but selection is responsible for the observed relationship between temporary risk and the level of earnings. The Bank of Amsterdam through the Lens of Monetary Competition http://www.frbatlanta.org//pubs/wp/12_14.cfm Mon, 17 Sep 2012 00:09:00 EST Stephen Quinn and William Roberds. Working Paper 2012-14 (September). In 1683 the Bank of Amsterdam introduced a form of irredeemable money. The authors argue that this new form of money flourished because it could compete with coin as a store of value and medium of exchange. The Safety and Soundness Effects of Bank M and A in the EU http://www.frbatlanta.org//pubs/wp/12_13.cfm Mon, 10 Sep 2012 00:09:00 EST Jens Hagendorff, Maria J. Nieto, and Larry D. Wall. Working Paper 2012-13 (September). Studying European bank mergers and acquisitions, the authors find that the acquirer and target become financially stronger if the acquirer's home country supervision is stronger than the target's. The Devil's in the Tail: Residential Mortgage Finance and the U.S. Treasury http://www.frbatlanta.org//pubs/wp/12_12.cfm Fri, 07 Sep 2012 00:09:00 EST W. Scott Frame, Larry D. Wall, and Lawrence J. White. Working Paper 2012-12 (August). What form the U.S. government's role in the housing finance market should take is a matter of robust debate. The authors provide a critical assessment of the various types of policy proposals that have been offered to further the conversation.