St Louis Fed paper observes high government reallocation costs

federal-reserve

A St Louis Federal Reserve paper published on Tuesday shows the government's optimal response to negative sectoral shocks is subject to large capital reallocation costs.

Rodolfo Manuelli and Adrian Peralta-Alva, the paper's authors, study the role that frictions in reallocating resources play in determining the optimal response of the government to a drop in demand. The authors are interested in learning how frictions in goods and labour markets affect the nature and speed of reallocating

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: