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Economic Research

The Federal Reserve Bank of Boston, as part of the Federal Reserve System, promotes price stability and sustainable growth in New England and the nation. In support of this function, the Bank’s economists advise Federal Reserve decision-makers on monetary policy and financial markets. They conduct innovative research to further our understanding of monetary policy, the national and regional economy, markets, and supervisory policy. Through presentations, papers, publications, conferences, and advisory activities, they share their insights and expertise with fellow professionals, policymakers, and the public at large. The Bank’s research activities are centered in a number of focused units: the Research Department, the New England Public Policy Center, the Research Center for Behavioral Economics and Decisionmaking, the Consumer Payments Research Center, and the Quantitative Analysis Unit of the Supervision, Regulation, and Credit Department.

Recent Papers and Publications

Impending U.S. Spending Bust? The Role of Housing Wealth as Borrowing Collateral
by Daniel Cooper
Public Policy Discussion Paper 09-9

Financial Leverage, Corporate Investment, and Stock Returns
by Ali K. Ozdagli
Working Paper 09-13

Housing and Debt Over the Life Cycle and Over the Business Cycle
by Matteo Iacoviello and Marina Pavan
Working Paper 09-12

TIPS Scorecard: Are TIPS Accomplishing What They Were Supposed to Accomplish? Can They Be Improved?
by Michelle L. Barnes, Zvi Bodie, Robert K. Triest, and J. Christina Wang
Public Policy Discussion Paper 09-8

The Struggle for Tax Reform in Maine, 2003-2009
by Richard Woodbury
NEPPC Discussion Paper 09-2

Did Easy Credit Lead to Economic Peril? Home Equity Borrowing and Household Behavior in the Early 2000s
by Daniel Cooper
Public Policy Discussion Paper 09-7

Reinvigorating Springfield’s Economy: Lessons from Resurgent Cities
by Yolanda K. Kodrzycki and Ana Patricia Muñoz
with Lynn Browne, DeAnna Green, Marques Benton, Prabal Chakrabarti, David Plasse, Richard Walker, and Bo Zhao
Public Policy Discussion Paper 09-6

Social and Private Learning with Endogenous Decision Timing
by Julian Jamison, David Owens, and Glenn Woroch
Working Paper 09-11

Securitization and Moral Hazard: Evidence from a Lender Cutoff Rule
by Ryan Bubb and Alex Kaufman
Public Policy Discussion Paper 09-5

Estimating the Border Effect: Some New Evidence
by Gita Gopinath, Pierre-Olivier Gourinchas, Chang-Tai Hsieh, and Nicholas Li
Working Paper 09-10

Efficient Organization of Production: Nested versus Horizontal Outsourcing
by Oz Shy and Rune Stenbacka
Working Paper 09-9

The President's Report to the Board of Directors pdf
September 2009

Research Review
Issue No. 11, January-July 2009

Real Estate Brokers and Commission: Theory and Calibrations
by Oz Shy
Working Paper 09-8

Your House or Your Credit Card, Which Would You Choose? Personal Delinquency Tradeoffs and Precautionary Liquidity Motives
by Ethan Cohen-Cole and Jonathan Morse
QAU Working Paper 09-5

Trends in U.S. Family Income Mobility, 1967–2004
by Katharine Bradbury and Jane Katz
Working Paper 09-7

Why Don't Lenders Renegotiate More Home Mortgages? Redefaults, Self-Cures, and Securitization
by Manuel Adelino, Kristopher Gerardi, and Paul S. Willen
Public Policy Discussion Paper 09-4

The Role of the Housing Market in the Migration Response to Employment Shocks
by Jeffrey Zabel
NEPPC Working Paper 09-2

A Proposal to Help Distressed Homeowners: A Government Payment-Sharing Plan
by Chris Foote, Jeff Fuhrer, Eileen Mauskopf, and Paul Willen
Public Policy Brief 09-1

Voting with Their Feet? Local Economic Conditions and Migration Patterns in New England
by Alicia Sasser
NEPPC Working Paper 09-1

Reviving Mortgage Securitization: Lessons from the Brady Plan and Duration Analysis
by Fabià Gumbau-Brisa and Catherine L. Mann
Public Policy Discussion Paper 09-3

The Optimal Level of Deposit Insurance Coverage
by Michael Manz
Working Paper 09-6

A Question of Liquidity: The Great Banking Run of 2008?
by Judit Montoriol-Garriga and Evan Sekeris
QAU Working Paper 09-4

Overview of New England's Economic Performance in 2008
New England Economic Indicators
, Q2 2009

Market Proxies, Correlation, and Relative Mean-Variance Efficiency: Still Living with the Roll Critique
by Todd Prono
QAU Working Paper 09-3

Geographic Variations in a Model of Physician Treatment Choice with Social Interactions
by Mary A. Burke, Gary M. Fournier, and Kislaya Prasad
Working Paper 09-5

Empirical Estimates of Changing Inflation Dynamics
by Jeff Fuhrer, Giovanni Olivei, and Geoffrey M. B. Tootell
Working Paper 09-4

Revenue Forecasting Processes in New England
by Yael Shavit
NEPPC Brief 09-4

Towards a More Prosperous Springfield, Massachusetts: Project Introduction and Motivation pdf
by Lynn Browne, DeAnna Green, with Marques Benton, Prabal Chakrabarti, Yolanda Kodrzycki, Ana Patricia Muñoz, David Plasse, Richard Walker
Public & Community Affairs Discussion Paper 09-1

Employing the Region's Assets: Baby Boomers Meeting New England's Skilled Workforce Needs
by Heather Brome and Sandra Hackman
NEPPC Conference Report 08-1

Has Overweight Become the New Normal? Evidence of a Generational Shift in Body Weight Norms
by Mary A. Burke, Frank Heiland, and Carl Nadler
Working Paper 09-3

Forgive and Forget: Who Gets Credit after Bankruptcy and Why?
by Ethan Cohen-Cole, Burcu Duygan-Bump, and Judit Montoriol-Garriga
QAU Working Paper 09-2

Reducing Foreclosures
by Christopher L. Foote, Kristopher S. Gerardi, Lorenz Goette, and Paul S. Willen
Public Policy Discussion Paper 09-2

Lasting Connections: Using Internships to Retain Recent College Graduates in New England
by Alicia Sasser
NEPPC Policy Brief 09-3

The Option Value of Consumer Bankruptcy
by Ethan Cohen-Cole
QAU Working Paper 09-1

Another Hidden Cost of Incentives: The Detrimental Effect on Norm Enforcement
by Andreas Fuster and Stephan Meier
Working Paper 09-2

Why Are (Some) Consumers (Finally) Writing Fewer Checks? The Role of Payment Characteristics
by Scott Schuh and Joanna Stavins
Working Paper 09-1

Making Sense of the Subprime Crisis
by Kristopher S. Gerardi, Andreas Lehnert, Shane M. Sherland, and Paul S. Willen
Public Policy Discussion Paper 09-1

Retention of Recent College Graduates in New England
by Alicia Sasser
NEPPC Policy Brief 09-2

The Supply of Recent College Graduates in New England
by Alicia Sasser
NEPPC Policy Brief 09-1

Subprime Mortgages, Foreclosures, and Urban Neighborhoods
by Kristopher S. Gerardi and Paul S. Willen
Public Policy Discussion Paper 08-6

Race, Obesity, and the Puzzle of Gender Specificity
by Mary A. Burke and Frank Heiland
Working Paper 08-8

The Balance Sheet Channel
by Ethan Cohen-Cole and Enrique Martinez-Garcia
QAU Working Paper 08-7

Household Bankruptcy Decision: The Role of Social Stigma vs. Information Sharing
by Ethan Cohen-Cole and Burcu Duygan-Bump
QAU Working Paper 08-6

The Responsiveness of Married Women's Labor Force Participation to Income and Wages: Recent Changes and Possible Explanations
by Katharine Bradbury and Jane Katz
Working Paper 08-7

A Portrait of New England's Immigrants
by Antoniya Owens
NEPPC Research Report 08-2

Global Imbalances and the Evolving World Economy
Book based on the Bank's 51st economic conference

Looking Behind the Aggregates: A Reply to “Facts and Myths about the Financial Crisis of 2008”
by Ethan Cohen-Cole, Burcu Duygan-Bump, José Fillat, and Judit Montoriol-Garriga
Working Paper QAU08-5

Summary of the Workshop on Consumer Behavior and Payment Choice
by Scott Schuh and Joanna Stavins
Public Policy Discussion Paper 08-5

Inflation Targeting—Central Bank Practice Overseas
by Jane Sneddon Little and Teresa Foy Romano
Public Policy Brief B08-1

The Impact of Immigration on Occupational Wages: Evidence from Britain
by Stephen Nickell and Jumana Saleheen
Working Paper 08-
6

Labor Supply in the New Century
Book based on the Boston Fed's 52nd economic conference

The Future of the Skilled Labor Force in New England: The Supply of Recent College Graduates
by Alicia Sasser
NEPPC Research Report 08-1

GARCH-Based Identification and Estimation of Triangular Systems
by Todd Prono
Working Paper QAU08-4

Classroom Peer Effects and Student Achievement
by Mary A. Burke and Tim R. Sass
Working Paper 08-5

Understanding Inflation and the Implications for Monetary Policy: A Phillips Curve Retrospective
Papers and presentations from the Boston Fed's 53rd economic conference

Public-Private Partnerships, Cooperative Agreements, and the Production of Public Services in Small and Rural Municipalities
by Robert D. Mohr, Steven Deller, and John Halstead
NEPPC Working Paper 08-4

Financing Municipalities in New England:
Revisiting the State-Local Relationship
pdf
by Robert Clifford
New England Public Policy Center Conference Report 07-1

The Value of Risk: Measuring the Service Output of U.S. Commercial Banks
by Susanto Basu, Robert Inklaar, and J. Christina Wang
Working Paper 08-4

Blood Donations and Incentives: Evidence from a Field Experiment
by Lorenz Goette and Alois Stutzer
Working Paper 08-3

A New Approach to Raising Social Security’s Earliest Eligibility Age
by Kelly Haverstick, Margarita Sapozhnikov, Robert K. Triest, and Natalia Zhivan
Public Policy Discussion Paper 08-4

The Lengthening of Childhood
by David Deming and Susan Dynarski
Public Policy Discussion Paper 08-3

Negative Equity and Foreclosure: Theory and Evidence
by Christopher L. Foote, Kristopher Gerardi, and Paul S. Willen
Working Paper NEPPC08-3

Subprime Facts: What (We Think) We Know about the Subprime Crisis and What We Don’t
by Christopher L. Foote, Kristopher Gerardi, Lorenz Goette, and Paul S. Willen
Public Policy Discussion Paper 08-2

Credit Card Debt and Payment Use
by Charles Sprenger and Joanna Stavins
Working Paper 08-2

Household Debt Repayment Behaviour: What Role Do Institutions Play?
by Burcu Duygan-Bump and Charles Grant
QAU Working Paper 08-3

Designing State Aid Formulas: The Case of a New Formula for Distributing Municipal Aid in Massachusetts
by Bo Zhao and Katharine Bradbury
Working Paper 08-1 / NEPPC 08-2

Is Obesity Contagious? Social Networks vs. Environmental Factors in the Obesity Epidemic
by Ethan Cohen-Cole and Jason M. Fletcher
QAU Working Paper 08-2

Why Does Unemployment Hurt the Employed? Evidence from the Life Satisfaction Gap between the Public and Private Sectors
by Simon Luechinger, Stephan Meier, and Alois Stutzer
Public Policy Discussion Paper 08-1

Credit Card Redlining
by Ethan Cohen-Cole
QAU Working Paper 08-1

The Dynamic between Municipal Revenue Sources and the State-Local Relationship in New England
by Richard F. Dye
NEPPC Working Paper 08-1

Can Young Professionals Afford to Buy a Home in New England? pdf
New England Public Policy Center Policy Brief 08-1

earlier research papers »
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Interactive Graphics
U.S. Family Income Mobility and Inequality, 1994 to 2004

Foreclosures, House-Price Changes, and Subprime Mortgages in MA
(Updated with data through 2008 and maps of house-price changes)

 

Research News and Events

After the Fall: Re-Evaluating Supervisory, Regulatory, and Monetary Policy
October 21-23, 2009
Some papers and presentations from the Boston Fed's 54th Economic Conference are now available.

Inflation and Monetary Policy in Extraordinary Times
October 2, 2009
President & CEO Rosengren's speech to the Greater Boston Chamber of Commerce's Financial Services Forum

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