Research
What Do We Learn From Cross-Regional Empirical Estimates in Macroeconomics
Adam Guren, Alisdair McKay, Emi Nakamura, and Jón Steinsson
NBER Macroeconomics Annual 2020, 175-223.
Cross-Regional estimates contain both partial equilibrium effects and local general equilibrium effects. Estimates of local fiscal multipliers can be used to isolate the partial equilibrium effects. Also, since housing supply elasticities are more dispersed in the long-run than short-run, cities with low long-run housing supply elasticities can have larger construction booms in the short run.
Identification in Macroeconomics
Emi Nakamura and Jón Steinsson
Journal of Economic Perspectives, 32(3), 59-86, Summer 2018.
Often the causal effects we can estimate don’t answer the question we are interested in. But causal effects estimates can also be used to distinguish between competing structural models and in that way indirectly shed light on questions of interest.
Price Rigidity: Microeconomic Evidence and Macroeconomic Implications
Emi Nakamura and Jón Steinsson
Annual Review of Economics, 5, 133-163, 2013.
Sluggish price adjustment is a leading explanation for the large effects of demand shocks on output and, in particular, the effects of monetary policy on output. But simple statistics such as the frequency of price change can be a misleading guide to the sluggishness of the aggregate price level.