Research Economists

All Publications and Papers for

Patrick J. Kehoe

Consultant



Bailouts, Time Inconsistency, and Optimal Regulation

April 2013 - Staff Report 481

Prices Are Sticky After All

Revised July 2012 - Staff Report 413

Financial Frictions and Fluctuations in Volatility

July 2012 - Staff Report 466

Sophisticated Monetary Policies

Revised May 2009 - Staff Report 419
Published In: Quarterly Journal of Economics (Vol. 125, No. 1, February 2010, pp. 47-89)

Facts and Myths about the Financial Crisis of 2008

October 2008 - Working Paper 666

Sophisticated Monetary Policies

Revised October 2008 - Working Paper 659

On the Need for a New Approach to Analyzing Monetary Policy

September 2008 - Staff Report 412

New Keynesian Models: Not Yet Useful for Policy Analysis

August 2008 - Staff Report 409
Published In: American Economic Journal: Macroeconomics (Vol. 1, No. 1, January 2009, pp. 242-266)
Additional Files (FTP)

New Keynesian Models: Not Yet Useful for Policy Analysis

July 2008 - Working Paper 664

If Exchange Rates Are Random Walks, Then Almost Everything We Say About Monetary Policy Is Wrong

July 2008 - Quarterly Review
Published In: AEA Papers and Proceedings (Vol. 97, May 2007, pp. 339-345)

On the Need for a New Approach to Analyzing Monetary Policy

May 2008 - Working Paper 662

Temporary Price Changes and the Real Effects of Monetary Policy

May 2008 - Working Paper 661

Time Inconsistency and Free-Riding in a Monetary Union

Revised April 2008 - Staff Report 308
Published In: Journal of Money, Credit, and Banking (Vol. 40, No. 7, October 2008, pp. 1329-1355)

The Heterogeneous State of Modern Macroeconomics: A Reply to Solow

October 2007 - Staff Report 399

Sticky Prices and Sectoral Real Exchange Rates

October 2007 - Working Paper 656

Time-Varying Risk, Interest Rates, and Exchange Rates in General Equilibrium

Revised September 2008 - Staff Report 371
Published In: Review of Economic Studies (Vol. 76, No. 3, July 2009, pp. 851-878)

Reply to Solow

September 2007 - Working Paper 654

On the Optimal Choice of a Monetary Policy Instrument

August 2007 - Staff Report 394

Are Structural VARs with Long-Run Restrictions Useful in Developing Business Cycle Theory?

Revised May 2007 - Staff Report 364
Published In: Journal of Monetary Economics (Vol. 55, No. 8, November 2008, pp. 1337-1352)
Additional Files (FTP)
See also Technical Appendix and Small Sample Appendix.

Response to CEV (with narration).

Modern Macroeconomics in Practice: How Theory is Shaping Monetary Policy

May 2007 - The Region

Modern Macroeconomics in Practice: How Theory Is Shaping Monetary Policy

January 2006 - Annual Reports

Sales and the Real Effects of Monetary Policy

April 2007 - Working Paper 652

Comparing Alternative Representations, Methodologies, and Decompositions in Business Cycle Accounting

Revised March 2007 - Staff Report 384

If Exchange Rates Are Random Walks, Then Almost Everything We Say about Monetary Policy is Wrong

March 2007 - Staff Report 388
Published In: American Economic Review (Vol. 97, No. 2, May 2007, pp. 339-345)

If Exchange Rates Are Random Walks Then Almost Everything We Say About Monetary Policy Is Wrong

March 2007 - Working Paper 650

Appendices: Business Cycle Accounting

Revised December 2006 - Staff Report 362
Additonal Materials (FTP)

Business Cycle Accounting

Revised December 2006 - Staff Report 328
Published In: Econometrica (Vol. 75, No. 3, May 2007, pp. 781-836)
Additional Materials (FTP)
Also available: PDF for Non-color Printers

Comparing Alternative Representations, Methodologies, and Decompositions in Business Cycle Accounting

December 2006 - Working Paper 647

How to Advance Theory with Structural VARs: Use the Sims-Cogley-Nason Approach

October 2006 - Staff Report 379

Modern Macroeconomics in Practice: How Theory is Shaping Policy

August 2006 - Staff Report 376
Published In: Journal of Economic Perspectives (Vol. 20, No. 4, Fall 2006, pp. 3-28)

The Advantage of Transparency in Monetary Policy Instruments

Revised July 2006 - Staff Report 297

Modeling the Transition to a New Economy: Lessons from Two Technological Revolutions

Revised May 2006 - Staff Report 296
Published In: American Economic Review (Vol. 97, No. 1, March 2007, pp. 64-88)

Time-Varying Risk, Interest Rates and Exchange Rates in General Equilibrium

Revised October 2005 - Working Paper 627

A Critique of Structural VARs Using Real Business Cycle Theory

Revised May 2005 - Working Paper 631
Additional Files (FTP)

Modeling and Measuring Organization Capital

Revised February 2005 - Staff Report 291
Published In: Journal of Political Economy (Vol. 113, No. 5, October 2005, pp. 1026-1053)

Sudden Stops and Output Drops

January 2005 - Staff Report 353
Published In: American Economic Review Papers and Proceedings (Vol. 95, No. 2, May 2005, pp. 381-387)
Additional Files (FTP)

Patrick Kehoe’s Comment on “Determinants of Business Cycle Comovement: A Robust Analysis” by Marianne Baxter and Michael Kouparitsas

November 2004 - Staff Report 349
Published In: Journal of Monetary Economics (Vol. 52, No. 1, January 2005, pp. 159-162)

The Optimal Degree of Discretion in Monetary Policy

Revised August 2004 - Staff Report 326
Published In: Econometrica (Vol. 73, No. 5, September 2005, pp. 1431-1475)

Deflation and Depression: Is There an Empirical Link?

January 2004 - Staff Report 331
Published In: American Economic Review (Vol. 94, No. 2, May 2004, pp. 99-103)

On the Desirability of Fiscal Constraints in a Monetary Union

November 2003 - Staff Report 330

Competitive Equilibria With Limited Enforcement

Revised September 2003 - Staff Report 307
Published In: Journal of Economic Theory (Vol. 119, No. 1, November 2004, pp. 184-206)

Accounting for the Great Depression

Spring 2003 - Quarterly Review
Published In: American Economic Review (Vol. 92, No. 2, May 2002, pp. 22-27)
Additional Files (FTP)

Financial Crises as Herds: Overturning the Critiques

April 2003 - Staff Report 316
Published In: Journal of Economic Theory (Vol. 119, No. 1, November 2004, pp. 128-150)

The Time Consistency of Monetary and Fiscal Policies

Revised April 2003 - Staff Report 305
Published In: Econometrica (Vol. 72, No. 2, March 2004, pp. 541-567)
Old Staff Report with Detailed Appendices (PDF)

Hot Money

Revised March 2003 - Staff Report 228
Published In: Journal of Political Economy (Vol. 111, No. 6, December 2003, pp. 1262-1292)

Decades Lost and Found: Mexico and Chile Since 1980

Winter 2002 - Quarterly Review

The Optimal Degree of Discretion in Monetary Policy

November 2002 - Working Paper 626

Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates?

Revised July 2002 - Staff Report 277
Published In: Review of Economic Studies (Vol. 69, No. 3, August 2002, pp. 533-563)
Additional Files and Technical Appendix (FTP)
For December 1998 version, see Staff Report 223.

On the Robustness of Herds

May 2002 - Working Paper 622

Technical Appendix: Accounting for the Great Depression

May 2002 - Working Paper 619

Business Cycle Accounting

April 2002 - Working Paper 625

Competitive Equilibria with Limited Enforcement

April 2002 - Working Paper 621

The Time Consistency of Monetary and Fiscal Policies

Revised April 2002 - Working Paper 616

Accounting for the Great Depression

February 2002 - Working Paper 619
Published In: AER, Papers and Proceedings (Vol. 92, No. 2, May 2002, pp. 22-27)
Additional Files (FTP)

The advantage of transparent instruments of monetary policy

Revised October 2001 - Working Paper 614

A Decade Lost and Found: Mexico and Chile in the 1980s

September 2001 - Staff Report 292
Published In: Review of Economic Dynamics (Vol. 5, No. 1, January 2002, pp. 166-205)

Technical Appendix: Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates?

Revised July 2001 - Staff Report 277

The Transition to a New Economy After the Second Industrial Revolution

Revised July 2001 - Working Paper 606

On the optimality of transparent monetary policy

April 2001 - Working Paper 613

Paths of Development for Early- and Late-Bloomers in a Dynamic Heckscher-Ohlin Model

September 2000 - Staff Report 256

Money, Interest Rates, and Exchange Rates With Endogenously Segmented Asset Markets

August 2000 - Staff Report 278
Published In: Journal of Political Economy (Vol. 110, No. 1, February 2002, pp. 73-112)

Money, Interest Rates, and Exchange Rates With Endogenously Segmented Asset Markets

August 2000 - Working Paper 605

International Business Cycles With Endogenous Incomplete Markets

March 2000 - Staff Report 265
Published In: Econometrica (Vol. 70, No. 3, May 2002, pp. 907-928)

Financial Crises as Herds

March 2000 - Working Paper 600

Taxing Capital Income: A Bad Idea

Summer 1999 - Quarterly Review

Money and Interest Rates With Endogenously Segmented Markets

April 1999 - Staff Report 260

Asking the Right Questions About the IMF

January 1998 - Annual Reports

Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates? (December 1998 Version)

Revised December 1998 - Staff Report 223

On the Need for Fiscal Constraints in a Monetary Union

August 1998 - Working Paper 589
Published In: Journal of Monetary Economics (Vol. 54, No. 8, November 2007, pp. 2399-2408)

Optimal Fiscal and Monetary Policy

July 1998 - Staff Report 251
Published In: Handbooks in Economics (Vol. 1C, 1999, pp. 1671-1745)

Sticky Price Models of the Business Cycle: Can the Contract Multiplier Solve the Persistence Problem?

Revised May 1998 - Staff Report 217
Published In: Econometrica (Vol. 68, No. 5, September 2000, pp. 1151-79)
Impulse Response Tables and Additional Files (FTP)

Reviving Reputation Models of International Debt

Winter 1997 - Quarterly Review

The Poverty of Nations: A Quantitative Investigation

Revised October 1997 - Staff Report 204
Additional files (FTP)

Models of Energy Use: Putty-Putty vs. Putty-Clay

March 1997 - Staff Report 230
Published In: American Economic Review (Vol. 89, No. 4, September 1999, pp. 1028-43)

Models of Sovereign Debt: Partial vs. General Reputations

March 1997 - Working Paper 580
Published In: International Economic Review (Vol. 39, No. 1, February 1998, pp. 55-70)

Technical Appendix to “Optimal Fiscal Policy in a Business Cycle Model”

August 1996 - Working Paper 567

Reputation Spillover Across Relationships: Reviving Reputation Models of Debt

March 1996 - Staff Report 209

Industry Evolution and Transition: Measuring Investment in Organization Capital

November 1995 - Staff Report 201

Social Insurance and Transition

November 1995 - Staff Report 202
Published In: International Economic Review (Vol. 37, No. 2, May 1996, pp. 377-401)

Putty-Clay Capital and Energy

April 1995 - Working Paper 548

Social Insurance and Transition

April 1995 - Working Paper 547

Optimal Social Insurance, Incentives, and Transition

March 1995 - Working Paper 546

The Role of Institutions in Reputation Models of Sovereign Debt

August 1994 - Staff Report 179
Published In: Journal of Monetary Economics (Vol. 35, No. 1, February 1995, pp. 45-64)

A Primer on Static Applied General Equilibrium Models

Spring 1994 - Quarterly Review
Published In: Modeling North America's economic integration (1995, pp. 1-31)

Capturing NAFTA's Impact With Applied General Equilibrium Models

Spring 1994 - Quarterly Review
Published In: Modeling North America's economic integration (1995, pp. 33-57)

International Business Cycles: Theory vs. Evidence

Fall 1993 - Quarterly Review
Published In: Frontiers of business cycle research (1995, pp. 331-356)

Industry Evolution and Transition: The Role of Information Capital

August 1993 - Staff Report 162

Optimal Fiscal Policy in a Business Cycle Model

July 1993 - Staff Report 160
Published In: Journal of Political Economy (Vol. 102, No. 4, August 1994, pp. 617-652)

Optimality of the Friedman Rule in Economies With Distorting Taxes

July 1993 - Staff Report 158
Published In: Journal of Monetary Economics (Vol. 37, No. 2, April 1996, pp. 203-223)

In Search of Scale Effects in Trade and Growth

Revised July 1992 - Staff Report 152
Published In: Journal of Economic Theory (Vol. 58, No. 2, December 1992, pp. 377-409)

Dynamics of the Trade Balance and the Terms of Trade: The J-Curve Revisited

May 1992 - Discussion Paper
Published In: American Economic Review (Vol. 84, No. 1, March 1994, pp. 84-103)

International Evidence on the Historical Properties of Business Cycles

November 1991 - Staff Report 145
Published In: American Economic Review (Vol 82, Num 4, September 1992, pp. 864-888)
Additional Files (OFFSITE)

International Real Business Cycles

November 1991 - Staff Report 146
Published In: Journal of Political Economy (Vol 100, Num 4, August 1992, pp. 745-775)
Published In: Open Economy Macroeconomics (Vol. 2, 2006, pp. 154-184)

Optimal Fiscal and Monetary Policy: Some Recent Results

November 1991 - Staff Report 147
Published In: Journal of Money, Credit, and Banking (Vol 23, Num 3, August 1991 (part 2), pp. 519-539)
Published In: Political economy, growth, and business cycles (1992, pp. 283-305)

International Real Business Cycles

Revised October 1991 - Working Paper 426

Reputation With Multiple Relationships: Revising Reputation Models of Debt

March 1991 - Staff Report 137

Technical Appendix to Optimal Fiscal Policy in a Stochastic Growth Model

January 1991 - Working Paper 473

Sustainable Plans and Debt

November 1989 - Staff Report 125
Published In: Journal of Economic Theory (Vol 61, No. 2, December 1993, pp. 230-261)
Published In: The legacy of Robert Lucas, Jr. (Vol. 3, 1999, pp. 325-356)

Sustainable Plans and Mutual Default

October 1989 - Staff Report 124
Published In: Review of Economic Studies (Vol. 60, No. 1, January 1993, pp. 175-195)

Sustainable Plans

June 1989 - Staff Report 122
Published In: Journal of Political Economy (Vol 98, Num 4, 1990, pp. 783-802)
Published In: Monetary and fiscal policy (Vol. 1, 1994, pp. 143-163)

International Coordination of Fiscal Policy in Limiting Economies

May 1989 - Staff Report 121
Published In: Journal of Political Economy (Vol 98, Num 3, June 1990, pp. 617-636)

On the Denomination of Government Debt: A Critique of the Portfolio Balance Approach

November 1988 - Staff Report 116
Published In: Journal of Monetary Economics (Vol. 23, No. 3, May 1989, pp. 359-376)

Time Consistency and Policy

August 1988 - Staff Report 115
Published In: Modern Business Cycle Theory (1989, pp. 265-305)

Coordination of Fiscal Policies in a World Economy

Revised August 1986 - Staff Report 98
Published In: Journal of Monetary Economics (Vol 19, No. 3, May 1987, pp. 349-376)

International Policy Cooperation May Be Undesirable

February 1986 - Staff Report 103
Published In: Review of Economic Studies (Vol 56, 1989, pp. 289-296)