We dissect the impact of a large and sudden exchange rate appreciation on Swiss border import prices, retail consumer expenditures domestic imported nondurable goods, following removal EUR/CHF floor in January 2015. Cross-sectional variation price changes by currency invoicing carries over to prices allocations, impacting imports competing as well expenditures. provide measures sensitivity shar...

This paper estimates the effects of exogenous changes in income and consumption taxes. The tax shocks are proxied with a narrative account liability United Kingdom. Income cuts have large on GDP, private consumption, investment. modest not statistically significant GDP its components. Shifting burden taxation from to is expansionary. Consistent conventional public finance theories, these result...

Financial innovation in recent decades has expanded portfolio choice. We investigate how greater choice affects investors’ savings and asset returns. establish a channel by which increases savings—by enabling them to earn the aggregate risk premium or take speculative positions. In equilibrium, customization (access risky assets beyond market portfolio) reduces risk-free rate. Participation but...

Impact of high solar zenith angles on dynamical and chemical processes in a coupled chemistry-climate model D. Lamago ∗ , M. Dameris, C. Schnadt, V. Eyring, and C. Brühl Institut für Physik der Atmosphäre, DLR-Oberpfaffenhofen, D-82234 Wessling, Germany Max-Planck-Institut für Chemie, D-55020 Mainz, Germany ∗ Now at: ZWE FRM-II and Institut für Experimentalphysik E21, TU-München, D-85748 Garchi...

This paper provides evidence that domestic opportunities to share risk have contributed to lower rates of private saving. Two econometric procedures are used in the analysis: (1) traditional instrumental variables estimation and (2) dynamic panel methods. The results reveal a negative relationship between domestic opportunities to diversify risk and aggregate private saving rates in a cross-sec...

Earnings are riskier and more unequal for households born in the 1960s 1980s than those 1940s. Despite improvements financial conditions, younger generations less likely to be living their own homes older at same age. By using a life-cycle model with housing portfolio choice that includes flexible earnings risk aggregate asset price risk, I show changes dynamics account large part of reduction ...

Campbell and Cochrane (1999) propose a preference speci cation that can explain a wide variety of asset pricing puzzles such as the high equity premium. They augment the basic power utility function with a time-varying subsistence level, or \habit", which is in the spirit of \catching up with the Joneses" but with a novel nonlinear mapping of consumption into habit. This paper demonstrates a su...

Designed to compete with fiat currencies, bitcoin proposes it is a crypto-currency alternative. Bitcoin makes a number of false claims, including: bitcoin can be a reserve currency for banking; hoarding equals saving; and that we should believe bitcoin can expand by deflation to become a global transactional currency supply. Bitcoin’s developers combine technical implementation proficiency with...