RJ Caballero, E Farhi… - 2006 - nber.org
Three of the most important recent facts in global macroeconomics--the sustained rise in the
US current account deficit, the stubborn decline in long run real rates, and the rise in the
share of US assets in global portfolio--appear as anomalies from the perspective of ...
RJ Caballero, E Farhi… - 2008 - nber.org
The research activities of the NBER are funded by grants from federal research agencies, by
private foundations, and by generous donations from our corporate associates and from
private individuals. The NBER is a non-profit, 501 (c)(3) organization. For information on ...
E Farhi… - 2009 - nber.org
The paper elicits a mechanism by which private leverage choices exhibit strategic
complementarities through the reaction of monetary policy. When everyone engages in
maturity transformation, authorities have little choice but facilitating refinancing. In turn, ...
E Farhi… - 2008 - nber.org
We propose a new model of exchange rates, which yields a theory of the forward premium
puzzle. Our explanation combines two ingredients: the possibility of rare economic disasters,
and an asset view of the exchange rate. Our model is frictionless, has complete markets, ...
R Caballero, E Farhi… - 2004 - nber.org
We propose a framework for understanding recurrent historical episodes of vigorous
economic expansion accompanied by extreme asset valuations, as exhibited by the US in
the 1990s. We interpret this phenomenon as a high-valuation equilibrium with a low ...
I Werning… - Journal of Political Economy, 2007 - dash.harvard.edu
We explore steady-state inequality in an intergenerational model with altruistically linked
individuals who experience privately observed taste shocks. When the welfare function
depends only on the initial generation, efficiency requires immiseration: inequality grows ...
E Farhi… - Journal of Financial Economics, 2007 - Elsevier
We study optimal consumption and portfolio choice in a framework where investors adjust
their labor supply through an irreversible choice of their retirement time. We show that
investing for early retirement tends to increase savings and reduce an agent's effective ...
E Farhi… - 2011 - nber.org
This paper analyzes the possibility and the consequences of rational bubbles in a dy-namic
economy where financially constrained firms demand and supply liquidity. Bub-bles are
more likely to emerge, the scarcer the supply of outside liquidity and the more limited the ...
E Farhi… - 2008 - mailhost.econ.yale.edu
Abstract We study efficient nonlinear taxation of labor and capital in a dynamic Mirrleesian
model incorporating political economy constraints. Policies are chosen sequentially over
time, without commitment, as the outcome of democratic elections. We study the best ...
E Farhi… - 2005 - nber.org
To what degree should societies allow inequality to be inherited? What role should estate
taxation play in shaping the intergenerational transmission of welfare? We explore these
questions by modeling altruistically-linked individuals who experience privately observed ...
E Farhi, M Golosov… - Review of Economic Studies, 2009 - Wiley Online Library
This paper studies a Diamond–Dybvig model of providing insurance against unobservable
liquidity shocks in the presence of unobservable trades. We show that competitive equilibria
are inefficient. A social planner finds it beneficial to introduce a wedge between the ...
E Farhi, J Lerner… - 2008 - nber.org
The sub-prime crisis has shown a harsh spotlight on the practices of securities underwriters,
which provided too many complex securities that proved to ultimately have little value. This
uproar calls attention to the fact that the literature on intermediaries has carefully analyzed ...
E Farhi… - MIT Department of Economics Working Paper …, 2009 - papers.ssrn.com
Abstract: This paper studies the efficiency gains from distorting savings in dynamic
Mirrleesian private-information economies. We develop a method that pertubs the
consumption process optimally, while preserving incentive compatibility. The Inverse ...
E Farhi… - 2011 - nber.org
We consider a dynamic Mirrlees economy in a life cycle context and study the op-timal
insurance arrangement. Individual productivity evolves as a Markov process and is private
information. We use a first order approach in discrete and continuous time and obtain ...
E Farhi… - 2006 - nber.org
For an economy with altruistic parents facing productivity shocks, the optimal estate taxation
is progressive: fortunate parents should face lower net returns on their inheritances. This
progressivity reflects optimal mean reversion in consumption, which ensures that a long- ...
E Farhi - 2007 - nber.org
This paper analyzes the theoretical and quantitative implications of optimal capital taxation
in the neoclassical growth model with aggregate shocks and incomplete markets. The model
features a representative-agent economy with proportional taxes on labor and capital. I ...
E Farhi… - The American Economic Review, 2009 - JSTOR
The expanding so-called" shadow banking sys tem"(conduits, hedge funds, investment
banks, monolines) has engaged in substantial transfor mation and, unlike commercial
banks, could not avail itself of stable insured deposits. Mutual funds are under the threat of ...
E Farhi… - 2006 - papers.ssrn.com
Abstract: In this paper we investigate whether stock market overpricing leads to aggregate
(real) inefficiencies. We first investigate a standard dynamic contracting model of investment
subject to financing constraints. We show that stock market mispricing will have two robust ...
E Farhi, SP Fraiberger,
X Gabaix, R Ranciere… - 2009 - nber.org
How much of carry trade excess returns can be explained by the presence of disaster risk?
To answer this question, we propose a simple structural model that includes both Gaussian
and disaster risk premia and can be estimated even in samples that do not contain ...
This report presents a set of concrete proposals of increasing ambition for the reform of the
international monetary system. The proposals aim at improving the international provision of
liquidity in order to limit the effects of individual and systemic crises and decrease their ...
I Correia, E Farhi, JP Nicolini… - 2011 - nber.org
When the zero lower bound on nominal interest rates binds, monetary policy cannot provide
appropriate stimulus. We show that in the standard New Keynesian model, tax policy can
deliver such stimulus at no cost and in a time-consistent manner. There is no need to use ...
E Farhi… - 2005 - papers.ssrn.com
Abstract: We study optimal consumption and portfolio choice in a framework where investors
save for early retirement and assume that agents can adjust their labor supply only through
an irreversible choice of their retirement time. We obtain closed form solutions and ...
E Farhi, M Golosov… - 2007 - nber.org
This paper studies a mechanism design model of financial intermediation. There are two
informational frictions: agents receive unobservable shocks and can participate in markets
by engaging in trades unobservable to intermediaries. Without regulations, intermediaries ...
E Farhi… - The Quarterly Journal of Economics, 2010 - qje.oxfordjournals.org
Abstract We present a model with altruistic parents and heterogeneous productivity. We
derive two key properties for optimal estate taxation. First, the estate tax should be
progressive, so that parents leaving a higher bequest face a lower net return on bequests. ...
E Farhi, J Lerner… - Journal of the European Economic …, 2005 - Wiley Online Library
Abstract We study the role of Standard Setting Organization (SSOs) in the adoption of
standards. The way the SSO balances the interests of sponsor and users is key to its ability
to certify the technology. Proximity to users builds trust in the endorsement, but may be ...
E Farhi, A Hagiu… - 2008 - papers.ssrn.com
Abstract: Strategic interactions between two-sided platforms depend not only on whether
their decision variables are strategic complements or substitutes as for one-sided firms, but
also-and crucially so-on whether or not the platforms subsidize one side of the market in ...
E Farhi… - Journal of Monetary Economics, 2008 - Elsevier
This paper derives an intertemporal optimality condition for economies with private
information, focusing on a class of recursive preferences. By comparing it to the situation
where agents can freely save in a risk-free asset market, we derive the optimal savings ...
[CITATION] Pierre% Olivier Gourinchas, 2008b, An equilibrium model of kglobal imbalancesland low interest rates
RJ Caballero… - American Economic Review
E Farhi… - 2008 - nber.org
We explore the link between liquidity and investment in a an overlapping generation model
with a standard asynchronicity between firms' access to and need for cash. Imperfect
pledgeability hinders the capacity of capital markets to resolve this asynchronicity, ...
D Cohen… - 2002 - papers.ssrn.com
Abstract: The Paper highlights one critical difference between Europe and the US regarding
the Phillips curve: the behaviour of prices. While they are quickly restored to an equilibrium
level in the US, European prices are driven by highly counter-cyclical mark-ups. In bad ...
[CITATION] An Equilibrium Model of “Global Imbalances” and Low Interest Rate
CJ Ricardo, E Farhi… - NBER Working Paper Series, 2006
[CITATION] Forthcoming.“Collective Moral Hazard, Maturity Mismatch and Systemic Bailouts.”
E Farhi… - American Economic Review
E Farhi, G Gopinath… - 2011 - nber.org
We show that even when the exchange rate cannot be devalued, a small set of conventional
fiscal instruments can robustly replicate the real allocations attained under a nominal
exchange rate devaluation in a standard New Keynesian open economy environment. We ...
RJ Caballero, E Farhi… - Brookings Papers …, 2008 - siteresources.worldbank.org
This paper provides theoretical and empirical evidence to support the proposition that three
of the major global macroeconomic phenomena of recent years–the persistent global
imbalances, the subprime crisis, and the volatile oil prices that followed it–are tightly ...
[CITATION] Bubbly Liquidity, forthcoming in Review of Economic Studies
E Farhi… - 2010
[CITATION] Pierre $ Olivier Gourinchas (2006), nAn Equilibrium Model of lGlobal Imbalancesmand Low Interest Rates
R Caballero… - o MIT Working Paper
[CITATION] JL, and J. Tirole (2008):“Fear of Rejection: Tiered Certification and Transparency,”
E Farhi - NBER working paper
[CITATION] Rare disasters and exchange rates, un& published paper
E Farhi… - Harvard University and New York University, 2008
E Farhi, C Sleet, I Werning… - The Review of …, 2012 - restud.oxfordjournals.org
Abstract We study efficient non-linear taxation of labour and capital in a dynamic Mirrleesian
model incorporating political economy constraints. Policies are chosen sequentially over
time, without commitment. Our main result is that the marginal tax on capital income is ...
[CITATION] An equilibrium model of “global imbalances” and low interest rates. January 2006
R Caballero, E Farhi… - MIT working paper 06-02
[CITATION] Rare disasters and exchange rates
X Gabaix… - March 2009. Working Paper NYU …
[CITATION] Pierre-Olivier, 2008, Financial crash, commodity prices and global imbalances
RJ Caballero… - NBER Working Paper
[CITATION] mAn Equilibrium Model of mGlobal Imbalancesnn
R Caballero, E Farhi… - 2006 - mimeo, University of Cali& fornia, …
B Eichengreen,
D Leblang, BC Kho, RM Stulz… - 2000 - bis.org
On 19–20 June 2006, the BIS held its fifth Annual Conference, on Financial Globalisation, in
Brunnen, Switzerland. The event brought together some 60 senior representatives of central
banks, academic institutions and the private sector to exchange views on this topic. This ...
[CITATION] An Equilibrium Model of “Global Imbalances” and Low Interest Rates
RJCEF Pierre, O Gourinchas - NBER working paper, 2006
[CITATION] kAn equilibrium model of iglobal imbal# ancesjand low interest ratesl
R Caballero, E Farhi… - American Economic Review, 2008
R Caballero, E Farhi… - 2008 - cepr.org
In this paper we argue that the persistent global imbalances, the subprime crisis, and the
volatile oil and asset prices that followed it, are tightly interconnected. They all stem from a
global environment where sound and liquid financial assets are in scarce supply. Our ...
I Correia, E Farhi, JP Nicolini… - 2011 - cepr.org
When the zero lower bound on nominal interest rates binds, monetary policy cannot provide
appropriate stimulus. We show that in the standard New Keynesian model, tax policy can
deliver such stimulus at no cost and in a time-consistent manner. There is no need to use ...
[CITATION] Saving and Investing for Early Retirement: A Theoretical Analysis (Digest Summary)
E Farhi… - CFA Digest, 2007 - CFA Institute
[CITATION] INSTITUTIONS AND MARKETS Series
E Farhi
E Farhi… - 2006 Meeting Papers, 2006 - 18.7.29.232
Abstract This paper studies the efficiency gains from distorting savings in dynamic
Mirrleesian private-information economies. We develop a method that pertubs the
consumption process optimally while preserving incentive compatibility. The Inverse Euler ...
I Werning… - 2005 Meeting Papers, 2005 - en.scientificcommons.org
Abstract Inequality Social Discounting and Progressive Estate Taxation Emmanuel Farhi MIT
efarhi mit edu Werning MIT NBER and UTDT iwerning mit edu First Draft June This Version
January Abstract what degree should societies allow inequality inherited What role should ...
R Caballero, I Werning, E Farhi - 2006 - dspace.mit.edu
Chapter 1 analyzes the theoretical and quantitative implications of optimal fiscal policy in a
business cycle model with incomplete markets. I first consider the problem of a government
facing expenditure shocks in an economy where the only asset is a real risk-free bond. ...
E Farhi… - economics.stanford.edu
Abstract We study efficient allocations in a Mirrleesian model with altruistic parents and
focus on the implications for estate taxation. We show that optimal estate taxes have two
important features. First, taxation should be progressive, so that more productive parents ...
D Cohen… - 2001 - cepr.org
The Paper highlights one critical difference between Europe and the US regarding the
Phillips curve: the behaviour of prices. While they are quickly restored to an equilibrium level
in the US, European prices are driven by highly counter-cyclical mark-ups. In bad times, ...
R Caballero, E Farhi… - 2006 - cepr.org
Three of the most important recent facts in global macroeconomics-the sustained rise in the
US current account deficit, the stubborn decline in long run real rates, and the rise in the
share of US assets in global portfolio-appear as anomalies from the perspective of ...
E Farhi, G Gopinath… - 2011 - cepr.org
We show that even when the exchange rate cannot be devalued, a small set of conventional
fiscal instruments can robustly replicate the real allocations attained under a nominal
exchange rate devaluation in a standard New Keynesian open economy environment. We ...
E Farhi, SP Fraiberger,
X Gabaix, R Rancičre… - 2009 - cepr.org
How much of carry trade excess returns can be explained by the presence of disaster risk?
To answer this question, we propose a simple structural model that includes both Gaussian
and disaster risk premia and can be estimated even in samples that do not contain ...
P Aghion, E Farhi… - 2011 - snb.ch
Abstract In this paper, we use cross% industry, cross% country panel data to test whether
industry growth is positively affected by the interaction between the reactivity of real short
term interest rates to the business cycle and industry% level measures of financial ...
E Farhi - 2006 - en.scientificcommons.org
Abstract Chapter 1 analyzes the theoretical and quantitative implications of optimal fiscal
policy in a business cycle model with incomplete markets. I first consider the problem of a
government facing expenditure shocks in an economy where the only asset is a real risk- ...
«Executive Summary» Liquidité internationale. Nos propositions de réforme du système
monétaire international se concentrent sur la provision liquidité. Elles contribueront à limiter
les effets des crises individuelles ou systémiques, et à en diminuer la fréquence. Nous ...
E Farhi… - 2006 - books.google.com
Le droit de la concurrence est au cœur de la construction européenne depuis ses origines.
Le double objectif qui lui est assigné-veiller à préserver une concurrence libre et non
faussée, et promouvoir l'intégration du marché commun-lui confère une importance ...
Create email alert
About Google Scholar - All About Google - My Citations
©2012 Google