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Our economists engage in scholarly research and policy-oriented analysis on a wide range of important issues.   More ››

New from Liberty Street Economics

My Two (Per)cents: How Are American Workers Dealing with the Payroll Tax Hike? The expiration of the 2011-12 payroll tax cut has led to a substantial reduction in spending and will likely contribute to a slowdown, or possibly a reversal, in the paydown of consumer debt. By Basit Zafar, Max Livingston, and Wilbert van der Klaauw

Research Topics in Focus

Key Labor Market Indicators by Occupation Since the 1980s, employment had become increasingly concentrated in higher- and lower-skilled jobs—a phenomenon called job polarization. While the trend is an important one in the labor market, our research hasn’t found it to be a key contributor to the sluggish jobs recovery. Analysis, such as in a recent post on our Liberty Street Economics blog, suggests that weakness is broad-based and not limited to any market segment. Interactive charts prepared in connection with the blog post allow for comparison of unemployment rates, average durations of unemployment, and job-finding rates for workers in a range of “routine” and “nonroutine” occupations.

Student Loan Debt Higher education is an important investment for young workers seeking better jobs and greater income, but it is accompanied by a growing student debt burden. Total student loan balances tripled to nearly $1 trillion between 2004 and 2012. Using data from the New York Fed’s Quarterly Report on Household Debt and Credit, our economists present new analysis on the historical and current student debt picture and consider its implications for borrowers and the economy.

Expanded Reporting of U.S. Banking Trends Economists in the Financial Intermediation Function have published the first edition of a new quarterly report tracking the consolidated financial condition of the U.S. commercial banking industry. Quarterly Trends for Consolidated U.S. Banking Organizations analyzes aggregate trends in profitability, assets, capital, and other key measures for commercial banks and bank holding companies (BHCs). The report accounts for nonbank subsidiaries of BHCs, such as broker-dealers and asset management firms, distinguishing it from other industry profiles.

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Events

System Applied Microeconomics Conference The New York Fed will host the 2013 System Applied Microeconomics Conference on May 16-17. The event showcases the applied research being conducted across the Federal Reserve system and seeks to foster interaction among economists engaged in this field. Full agenda >>

Recent Articles

Trading Partners in the Interbank Lending Market There is large and persistent heterogeneity in the extent to which some banks concentrate lending and borrowing across counterparties, observe Afonso, Kovner, and Schoar. By Gara Afonso, Anna Kovner, and Antoinette Schoar, Staff Reports 620, May 2013

Securities Loans Collateralized by Cash: Reinvestment Risk, Run Risk, and Incentive Issues Keane argues that the standard compensation scheme for securities-lending agents, which typically provides for them to share in gains but not losses, creates incentives to take excessive risk. By Frank M. Keane, Current Issues in Economics and Finance (19) 3, May 2013

Time-Varying Structural Vector Autoregressions and Monetary Policy: A Corrigendum Del Negro and Primiceri correct a mistake in the estimation algorithm of Primiceri’s 2005 time-varying structural vector autoregression model and propose a new algorithm for the estimation of VAR or DSGE models with stochastic volatility. By Marco Del Negro and Giorgio Primiceri, Staff Reports 619, May 2013

Inflation in the Great Recession and New Keynesian Models The authors use a standard DSGE model, available prior to the recent financial crisis and estimated using data up to third-quarter 2008, to explain the behavior of key macroeconomic variables since the crisis. By Marco Del Negro, Marc P. Giannoni, and Frank Schorfheide, Staff Reports 618, May 2013

Unintended Consequences of School Accountability Policies: Evidence from Florida and Implications for New York Programs linking rewards and sanctions to performance outcomes can induce schools to "game the system," rather than make genuine improvements. By Rajashri Chakrabarti and Noah Schwartz, Economic Policy Review, May 2013