Vol. 90, No. 2
Second Quarter 2005
Happy-Hour Economics, or How an Increase in Demand Can Produce a Decrease in Price
This article provides a step-by-step construction of a monopolistic competition model in which many firms each produce the same product, and thus bear the same production costs, as their competitors.
Payroll Employment Data: Measuring the Effects of Annual Benchmark Revisions
Nicholas L. Haltom, Vanessa D. Mitchell, and Ellis W. Tallman
This article highlights the historical revisions to the aggregate nonfarm payroll employment series. Examining both monthly survey-based revisions and the more extensive annual benchmark revisions, the authors focus specifically on how the sequence of data revisions modifies payroll employment estimates from their initial release.
Smoothing the Shocks of a Dynamic Stochastic General Equilibrium Model
Andrew Bauer, Nicholas Haltom, and Juan F. Rubio-Ramírez
In this article, the authors use a general equilibrium model with sticky prices and sticky wages as a framework for exploring the effects of structural shocks to the U.S. economy.