Working Papers - Federal Reserve Bank of Atlanta - FRB Atlanta 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. http://www.atlantafed.org/rss/ en-us http://www.atlantafed.org/ Atlanta Fed Logo http://www.atlantafed.org/~/media/Images/assets/image_gallery/frba_logo_rss http://www.atlantafed.org/rss/ Ambiguity, Long-Run Risks, and Asset Prices https://www.atlantafed.org:443/research/publications/wp/2021/09/08/21--ambiguity-long-run-risks-asset-prices?item=D5FF37C9-2650-4BFA-BD03-2BD7ED47C1B0 D5FF37C9-2650-4BFA-BD03-2BD7ED47C1B0 Wed, 08 Sep 2021 09:30:00 EST The author of this working paper develops a generalized long-run risks model with smooth ambiguity to explain major asset-pricing puzzles particularly, the variance premium puzzle. Reproducing the magnitude and dynamics of the variance premium in the data, the model shows that most (77 percent) of the variance premium is attributable to the ambiguity channel. Monetary Policy over the Life Cycle https://www.atlantafed.org:443/research/publications/wp/2021/08/20/20--monetary-policy-over-life-cycle?item=53634095-D60B-4C55-A088-D43D5FC491A3 53634095-D60B-4C55-A088-D43D5FC491A3 Fri, 20 Aug 2021 09:30:00 EST The authors of this working paper use an overlapping-generations model to analyze monetary policy’s impact on households of different ages. They find that households between the ages of 60 and 80 benefit from a higher nominal interest rate but that other age groups lose. The S-Curve: Understanding the Dynamics of Worldwide Financial Liberalization https://www.atlantafed.org:443/research/publications/wp/2021/07/13/19-s-curve--understanding-dynamics-of-worldwide-financial-liberalization?item=9C914253-403D-4450-8153-3B84A6CA9F74 9C914253-403D-4450-8153-3B84A6CA9F74 Tue, 13 Jul 2021 09:30:00 EST The authors of this working paper examine the paths of domestic financial reforms in 90 countries from 1973 to 2014, finding that informational diffusion from economic and financial experiences of advanced economies played a crucial role in the policy-formation process. Impact of the 2017 Tax Cuts and Jobs Act on Labor Supply and Welfare of Married Households https://www.atlantafed.org:443/research/publications/wp/2021/06/24/18-impact-of-2017-tax-cuts-and-jobs-act-on-labor-supply-and-welfare-of-married-households?item=17999F5F-0F05-4702-B4A7-DBC75BFD90FE 17999F5F-0F05-4702-B4A7-DBC75BFD90FE Thu, 24 Jun 2021 09:30:00 EST Examining changes to the labor supply and family welfare resulting from the Tax Cuts and Jobs Act of 2017, the authors of this working paper find that gains in welfare disproportionately benefited the wealthy; families with any self-employment income; families with children; and families renting, versus owning, their home. Taxes, Subsidies, and Gender Gaps in Hours and Wages https://www.atlantafed.org:443/research/publications/wp/2021/06/24/17-taxes-subsidies-gender-gaps-in-hours-wages?item=74BD082B-60F8-46A8-902E-0CC484C7490E 74BD082B-60F8-46A8-902E-0CC484C7490E Thu, 24 Jun 2021 09:00:00 EST The authors of this working paper document a negative cross-country correlation between gender ratios in market hours and wages. The effects of taxes and social subsidies on family care through the marketization of female home hours are important in accounting for the cross-country differences. Near-Rational Equilibria in Heterogeneous-Agent Models: A Verification Method https://www.atlantafed.org:443/research/publications/wp/2021/06/24/16-near-rational-equilibria-in-models?item=7EDB54F8-2020-40AA-9314-F14A6F02EFF8 7EDB54F8-2020-40AA-9314-F14A6F02EFF8 Thu, 24 Jun 2021 08:30:00 EST The authors of this working paper propose a general simulation-based procedure for estimating the quality of approximate policies in heterogeneous-agent equilibrium models. Their method is general and straightforward to implement and can be used in conjunction with various solution algorithms. Estimating Occupation- and Location-Specific Wages over the Life Cycle https://www.atlantafed.org:443/research/publications/wp/2021/06/03/15-estimating-occupation-and-location-specific-wages-over-life-cycle?item=3BEC24B3-F03F-4746-9CD7-490B0DB872FA 3BEC24B3-F03F-4746-9CD7-490B0DB872FA Thu, 03 Jun 2021 09:00:00 EST Using individual-level data from the Current Population Survey, the authors of this working paper develop a novel method to project location-specific life-cycle wages for all occupations listed in the Occupational Outlook Handbook from the U.S. Bureau of Labor Statistics. Spoils of War: Trade Shocks and Segmented Labor Markets in Spain during WWI https://www.atlantafed.org:443/research/publications/wp/2021/05/28/14-spoils-of-war--trade-shocks-and-segmented-labor-markets-in-spain-during-wwi?item=0526E86C-0D55-4EA9-80E1-2CDDC33E6D23 0526E86C-0D55-4EA9-80E1-2CDDC33E6D23 Fri, 28 May 2021 09:00:00 EST Exploring one aspect of the trade shock brought on by WWI, the author of this working paper finds that the demand shock that emanated from belligerent countries caused drastic increases in wages and consumer prices, as well as a reallocation of labor, in neutral Spain. Political Connections, Allocation of Stimulus Spending, and the Jobs Multiplier https://www.atlantafed.org:443/research/publications/wp/2021/05/13/13-political-connection-public-spending-and-jobs?item=2BC43870-78BA-47C9-80DB-15AC8FB33F59 2BC43870-78BA-47C9-80DB-15AC8FB33F59 Thu, 13 May 2021 09:00:00 EST Using American Recovery and Reinvestment Act (ARRA) data, the authors of this working paper show that firms use their political connections to win stimulus grants and that public expenditure, when channeled through politically connected firms, hinders job creation. Unit Cost Expectations and Uncertainty: Firms' Perspectives on Inflation https://www.atlantafed.org:443/research/publications/wp/2021/03/30/12-firms-perspectives-on-inflation?item=E7C6B911-C67F-4274-88F0-D74528E4A9A1 E7C6B911-C67F-4274-88F0-D74528E4A9A1 Tue, 30 Mar 2021 09:00:00 EST Examining firms' inflation perceptions, expectations, and uncertainty, the authors of this working paper find that firms' expectations for the nominal side of the economy have little in common with households' expectations, moving instead in tandem with inflation expectations of professional forecasters and market participants.