A Guide to FRB/US: A Macroeconomic Model of the United States

Brayton, Flint; Tinsley, Peter; Bomfim, Antúlio N.; Reifschneider, David; Muehlen, Peter von zur; Tetlow, Robert; Williams, John C.

doi:10.17016/feds.1996.42

Cited by 122 publications

(82 citation statements)

References 6 publications

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“…Of the existing papers examining disaggregate wealth most concentrate on equity holdings. Brayton and Tinsley (1996) find that the MPC out of stock market wealth in the US is half of other components of net worth. In one notable cross‐country study Boone et al .…”

Section: Theoretical and Empirical Backgroundmentioning

confidence: 92%

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Disaggregate Wealth and Aggregate Consumption: an Investigation of Empirical Relationships for the G7*

Byrne

Davis

2003

Oxf Bull Econ Stat

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To date, studies of wealth effects on consumption have mainly used aggregate wealth definitions on a single-country basis. This study seeks to break new ground by analysing disaggregated financial wealth in consumption functions for G7 countries. Contrary to earlier empirical work, we find that illiquid financial wealth (i.e. securities, pensions and mortgage debt) tends to be a more important long-run determinant of consumption than liquid financial wealth. These results imply potential instability in consumption functions employing aggregate wealth. Our results are robust using SURE; when testing with a nested specification; and when using a linear model.

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Section: Theoretical and Empirical Backgroundmentioning

confidence: 92%

“…4 4 According to Brayton and Tinsley (1996), Boone et al . (1998) and Starr‐McCluer (2002), aggregate studies of the US find that the MPC out of net wealth is between 1 and 7%.…”

mentioning

confidence: 99%

Disaggregate Wealth and Aggregate Consumption: an Investigation of Empirical Relationships for the G7*

Byrne

Davis

2003

Oxf Bull Econ Stat

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“…Using time series data for the United States, Feldstein (2009) estimates the MPC out of real disposable income to be 0.70. In the Federal Reserve Board model for the United States in the mid 1990s, the MPC out of labor income was 0.51 (Brayton and Tinsley 1996). Paxson (1992) looks at income variations caused by weather variability among farmers in Thailand.…”

Section: Alternative Models Of Investmentmentioning

confidence: 99%

The Effect of Fertility Reduction on Economic Growth

Ashraf

Weil

Wilde

2013

Population & Development Rev

200

194

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We assess quantitatively the effect of exogenous reductions in fertility on output per capita. Our simulation model allows for effects that run through schooling, the size and age structure of the population, capital accumulation, parental time input into child-rearing, and crowding of fixed natural resources. The model is parameterized using a combination of microeconomic estimates, data on demographics and natural resource income in developing countries, and standard components of quantitative macroeconomic theory. We apply the model to examine the effect of a change in fertility from the UN medium-variant to the UN low-variant projection, using Nigerian vital rates as a baseline. For a base case set of parameters, we find that such a change would raise output per capita by 5.6 percent at a horizon of 20 years, and by 11.9 percent at a horizon of 50 years.

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“… 10 For example, the output gap fell between 8 and 10 percentage points, which could explain, without lags, a decline of about 3–4 percentage points in inflation by using both a textbook Phillips curve or a more complex estimation (Brayton and Tinsley 1996) for the United States, which are not very different from the estimations for Chile. The actual decline in inflation in Chile has been about 10 percentage points. …”

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confidence: 99%