Department of Economics
64 Waterman Street
Providence, RI 02906
Institutional Affiliation: Brown University
Information about this author at RePEc
NBER Working Papers and Publications
|February 2018||Kaldor and Piketty’s Facts: The Rise of Monopoly Power in the United States|
with Gauti B. Eggertsson, Ella Getz Wold: w24287
The macroeconomic data of the last thirty years has overturned at least two of Kaldor’s famous stylized growth facts: constant interest rates, and a constant labor share. At the same time, the research of Piketty and others has introduced several new and surprising facts: an increase in the financial wealth-to-output ratio in the US, an increase in measured Tobin’s Q, and a divergence between the marginal and the average return on capital. In this paper, we argue that these trends can be explained by an increase in market power and pure profits in the US economy, i.e., the emergence of a non-zero-rent economy, along with forces that have led to a persistent long term decline in real interest rates. We make three parsimonious modifications to the standard neoclassical model to explain these...
|January 2017||A Model of Secular Stagnation: Theory and Quantitative Evaluation|
with Gauti B. Eggertsson, Neil R. Mehrotra: w23093
This paper formalizes and quantifies the secular stagnation hypothesis, defined as a persistently low or negative natural rate of interest leading to a chronically binding zero lower bound (ZLB). Output-inflation dynamics and policy prescriptions are fundamentally different from those in the standard New Keynesian framework. Using a 56-period quantitative life cycle model, a standard calibration to US data delivers a natural rate ranging from –1:5% to –2%, implying an elevated risk of ZLB episodes for the foreseeable future. We decompose the contribution of demographic and technological factors to the decline in interest rates since 1970 and quantify changes required to restore higher rates.
Published: Gauti B. Eggertsson & Neil R. Mehrotra & Jacob A. Robbins, 2019. "A Model of Secular Stagnation: Theory and Quantitative Evaluation," American Economic Journal: Macroeconomics, vol 11(1), pages 1-48. citation courtesy of
|May 2013||The Spillover Effects of Medicare Managed Care: Medicare Advantage and Hospital Utilization|
with Katherine Baicker, Michael Chernew: w19070
More than a quarter of Medicare beneficiaries are enrolled in Medicare Advantage, which was created in large part to improve the efficiency of health care delivery by promoting competition among private managed care plans. This paper explores the spillover effects of the Medicare Advantage program on the traditional Medicare program and other patients, taking advantage of changes in Medicare Advantage payment policy to isolate exogenous increases in Medicare Advantage enrollment and trace out the effects of greater managed care penetration on hospital utilization and spending throughout the health care system. We find that when more seniors enroll in Medicare managed care, hospital costs decline for all seniors and for commercially insured younger populations. Greater managed care penet...
Published: Journal of Health Economics Volume 32, Issue 6, December 2013, Pages 1289–1300 Cover image The spillover effects of Medicare managed care: Medicare Advantage and hospital utilization Katherine Baickera, , , Michael E. Chernewb, Jacob A. Robbinsc citation courtesy of