Review of Economics and Statistics articles

Recent articles from Review of Economics and Statistics

SCHOOL-BASED PEER EFFECTS AND JUVENILE BEHAVIOR.
May 1, 2001... I. Introduction MANY social scientists argue that social interactions play an important role in determining behavioral and economic outcomes. Wilson (1987, 1996), for example, argues that youths are collectively socialized through their contact with adults. Coleman (1990), Crane...

APPROXIMATION BIAS IN LINEARIZED EULER EQUATIONS.
May 1, 2001... I. Introduction THE estimation of key parameters in the household's utility function has been a longstanding goal of empirical research on consumer behavior. These parameters are of interest because they furnish a quantitative gauge of theoretically important concepts, such the...

A MEASURE OF COMOVEMENT FOR ECONOMIC VARIABLES: THEORY AND EMPIRICS.
May 1, 2001... I. Introduction FEW empirical relations have the status of "stylized facts" in economics. One of them is that macroeconomic aggregates comove, an observation that has been the source of speculation of economic theory since its birth. In modern theories of the business cycle, people...

MEASURING THE NAIRU: EVIDENCE FROM SEVEN ECONOMIES.
May 1, 2001... I. Introduction BEGINNING with Friedman (1968), the natural rate of unemployment (hereafter, used synonymously with the nonaccelerating inflation rate of unemployment, or NAIRU) has often been defined as the unique level of the unemployment rate such that, after controlling for supply...

IS THE FED TOO TIMID? MONETARY POLICY IN AN UNCERTAIN WORLD.
May 1, 2001... I. Introduction THE question that motivates this paper is: How close was recent monetary policy to the behavior recommended by an optimal policy rule? An optimal rule can be derived with a structural model and a loss function for policymakers. For example, Rudebusch and Svensson (1999)...