#2007-053A "The Tax Treatment of Homeowners and Landlords and the Progressivity of Income Taxation"
by Matthew Chambers, Carlos Garriga, and Don Schlagenhauf
December 2007

This paper analyzes the connection between the asymmetric tax treatment of homeowners and landlords and the progressivity of income taxation using a quantitative overlapping generations general equilibrium model with housing and rental markets. More...

#2007-052B "The Microstructure of the U.S. Treasury Market"
by Bruce Mizrach, and Christopher J. Neely
December 2007
Revised April 2008

This article discusses the microstructure of the U.S. Treasury securities market. Treasury securities are nominally riskless debt instruments issued by the U.S. government. More...

FORTHCOMING: Encyclopedia of Complexity and Systems Science

#2007-051A "A General Equilibrium Theory of College with Education Subsidies, In-School Labor Supply, and Borrowing Constraints"
by Carlos Garriga, and Mark P. Keightley
November 2007

This paper analyzes the effectiveness of three different types of education policies: tuition subsidies (broad based, merit based, and flat tuition), grant subsidies (broad based and merit based), and loan limit restrictions. More...

#2007-050A "States and the Business Cycle"
by Michael T. Owyang, David E. Rapach, and Howard J. Wall
November 2007

We model the U.S. business cycle using a dynamic factor model that identifies common factors underlying fluctuations in state-level income and employment growth. More...

#2007-049A "Equilibrium Mortgage Choice and Housing Tenure Decisions with Refinancing"
by Matthew Chambers, Carlos Garriga, and Don Schlagenhauf
November 2007

The last decade has brought about substantial mortgage innovation and increased refinancing. The objective of the paper is to understand the determinants and implications of mortgage choice in the context of general equilibrium model with incomplete markets. More...

#2007-048D "The Impact of Milton Friedman on Modern Monetary Economics: Setting the Record Straight on Paul Krugman’s 'Who Was Milton Friedman?'"
by Edward Nelson, and Anna J. Schwartz
October 2007
Revised January 2008

Paul Krugman’s essay “Who Was Milton Friedman?” seriously mischaracterizes Friedman’s economics and his legacy. In this paper we provide a rejoinder to Krugman on these issues. More...

#2007-047A "Multivariate Forecast Evaluation and Rationality Testing"
by Ivana Komunjer, and Michael T. Owyang
October 2007

In this paper, we propose a new family of multivariate loss functions that can be used to test the rationality of vector forecasts without assuming independence across individual variables. More...

#2007-046B "Urban Crime and Labor Mobility"
by Subhayu Bandyopadhyay, Santiago Pinto, and Christopher H. Wheeler
October 2007
Revised March 2008

We present a model of crime where two municipalities exist within a metropolitan statistical area (MSA). More...

#2007-045C "Human Capital Externalities and Adult Mortality in the U.S."
by Christopher H. Wheeler
October 2007
Revised January 2008

Human capital is now widely recognized to confer numerous benefits, including higher incomes, lower incidence of unemployment, and better health, to those who invest in it. More...

#2007-044A "Lending to Uncreditworthy Borrowers"
by Rajdeep Sengupta
October 2007

This paper models entry and competition in "high-risk" credit markets. An incumbent lender’s advantage over any outside bank derives from its knowledge of (i) the risk profile of its (creditworthy) clients and (ii) uncreditworthy types in the borrower population. More...