Savings and Financial Underpinnings of Macro Models Workshop
The Savings and Financial Underpinnings of Macro Models Workshop, which is supported by CFSP, brings together development economists and researchers working on quantitative micro-founded macroeconomic models and who have relevant technical expertise in a variety of sub-fields, in order to build better, more relevant models with realistic financial underpinnings.
Traditionally, development economics has focused on “partial equilibrium” phenomena, examining relatively concrete policy treatments, such as subsidies to financial institutions.
The CFSP, however, is often interested in larger-scale phenomena, such as the mobilization of savings in large low-wealth populations, which can have impacts on the local, regional, or even national economies. The evaluation of these kinds of phenomena requires “general equilibrium” models.
By bridging various types of models (partial equilibrium, macroeconomic growth, and rich heterogeneous agent) in constructing general equilibrium models, and by rigorously checking those models against the data “on the ground" for plausibility and estimation, the workshop aims to assist in the development of theories and empirical strategies than can be used to evaluate the impact of changes to the financial sector. <Read the full workshop vision statement.>
Below we have listed papers and presentations, participants and agendas from past meetings.
August 2011 meeting
- Demand for Collateral, Foreign Holds of U.S. Treasuries and Taxes on Capital Flows, Dan Cao and Pedro Gete [Presentation slides] [Discussion]
- Disciplining Models of Financial Frictions with Data (panel discussion only), V.V. Chari [Presentation slides]
- Seven Questions on Post-Crisis Financial Regulation in Developing Countries Given Implications for Financial Access (panel discussion only), Stijn Claessens [Presentation slides]
- Why Aren't Devo Guys Talking to More Macro Guys? (panel discussion only), Xavier Gine [Presentation slides]
- Household Saving Behavior and Social Security Privatization, Alisdair McKay [Presentation slides] [Discussion]
- Finance and Misallocation: Evidence from Plant-Level Data, Virgiliu Midrigan and Daniel Yi Xu [Presentation slides] [Discussion]
- How do Households Responds to Income Shocks?, Fabrizio Perri (with Dirk Krueger) [Presentation slides] [Discussion]
- Incorporating Micro Financial Foundations into Macro Analysis (presentation only), Robert M. Townsend [Presentation slides]
- Macro from the Micro Point of View (presentation only), Christopher Udry [Presentation slides]
October 2010 meeting
- The Macroeconomics of Microfinance, Francisco Buera, Joseph Kaboski, and Yongseok Shin [Discussion]
- Financial Frictions, Investment, and Institutions, Stijn Claessens & Kenichi Ueda (with Yishay Yafeh) [Discussion]
- A Quantitative Model of Banking Industry Dynamics, Dean Corbae & Pablo D'Erasmo [Discussion]
- Financial Intermediation and Credit Policy in Business Cycle Analysis, Mark Gertler & Nobuhiro Kiyotaki [Presentation slides] [Discussion]
Quantifying the Impact of Financial Development on Economic Development, Jeremy Greenwood (with Juan M. Sanchez and Cheng Wang) [
Presentation slides][ Discussion]
- Inferring Labor Income Risk from Economic Choices: An Indirect Inference Approach, Fatih Guvenen (with Anthony Smith) [Presentation slides] [Discussion]
- The Life Cycle of Plants in India and Mexico, Chang-Tai Hsieh & Pete Klenow [Presentation slides]
- Moving Back Home: Insurance Against Labor Market Risk, Greg Kaplan [Presentation slides] [Discussion]