WorldCat Identities

Prescott, Edward C.

Overview
Works: 149 works in 479 publications in 2 languages and 4,595 library holdings
Genres: Conference proceedings  History 
Roles: Editor, Honoree
Classifications: HD75, 338.9
Publication Timeline
Key
Publications about  Edward C Prescott Publications about Edward C Prescott
Publications by  Edward C Prescott Publications by Edward C Prescott
Most widely held works about Edward C Prescott
 
Most widely held works by Edward C Prescott
Barriers to riches by Stephen L Parente ( )
22 editions published between 2000 and 2002 in English and held by 1,479 WorldCat member libraries worldwide
Annotation Why isn't the whole world as rich as the United States? Conventional views holds that differences in the share of output invested by countries account for this disparity. Not so, say Stephen Parente and Edward Prescott. In Barriers to Riches, Parente and Prescott argue that differences in Total Factor Productivity (TFP) explain this phenomenon. These differences exist because some countries erect barriers to the efficient use of readily available technology. The purpose of these barriers is to protect industry insiders with vested interests in current production processes from outside competition. Were this protection stopped, rapid TFP growth would follow in the poor countries, and the whole world would soon be rich. Barriers to Riches reflects a decade of research by the authors on this question. Like other books on the subject, it makes use of historical examples and industry studies to illuminate potential explanations for income differences. Unlike these other books, however, it uses aggregate data and general equilibrium models to evaluate the plausibility of alternative explanations. The result of this approach is the most complete and coherent treatment of the subject to date
Recursive methods in economic dynamics by Nancy L Stokey ( Book )
18 editions published between 1989 and 2004 in English and held by 799 WorldCat member libraries worldwide
Contractual arrangements for intertemporal trade by Edward C Prescott ( Book )
8 editions published between 1983 and 1987 in English and held by 416 WorldCat member libraries worldwide
Great depressions of the twentieth century by Timothy Jerome Kehoe ( Book )
11 editions published between 2002 and 2007 in English and held by 220 WorldCat member libraries worldwide
This volume's 16 readings, which examine past economic depressions, all apply variations of dynamic general equilibrium models and growth accounting to separate out the causes of changes in output into three input components? labor, capital, and productivity? and to assess the efficiency with which these factors of production are used. Using these analytical approaches, contributors attempt to ascertain which factors account for major downturns in economic activity
Malthus to Solow by Gary D Hansen ( Book )
16 editions published between 1998 and 2002 in English and held by 109 WorldCat member libraries worldwide
Abstract: A unified growth theory is developed that accounts for the roughly constant living standards displayed by world economies prior to 1800 as well as the growing living standards exhibited by modern industrial economies. Our theory also explains the industrial revolution, which is the transition from an era when per capita incomes are stagnant to one with sustained growth. This transition is inevitable given positive rates of total factor productivity growth. We use a standard growth model with one good and two available technologies. The first, denoted the capital as inputs. The second, denoted the does not require land. We show that in the early stages of development, only the Malthus technology is used and, due to population growth, living standards are stagnant despite technological progress. Eventually, technological progress causes the Solow technology to become profitable and both technologies are employed. At this point, living standards improve since population growth has less influence on per capita income growth. In the limit, the economy behaves like a standard Solow growth model
The stock market crash of 1929 : Irving Fisher was right! by Ellen R McGrattan ( Book )
19 editions published between 2001 and 2003 in English and held by 109 WorldCat member libraries worldwide
Abstract: In the fall of 1929, the market value of all shares listed on the New York Stock Exchange fell by 30 percent. Many analysts then and now take the view that stocks were then overvalued and the stock market was in need of a correction. Irving Fisher argued that the fundamentals were strong and the stock market was undervalued. In this paper, we estimate the fundamental value of corporate equity in 1929 using data on stocks of productive capital and tax rates as in McGrattan and Prescott (2000, 2001) and compare it to actual stock valuations. We find that the stock market in 1929 did not crash because the market was overvalued. In fact, the evidence strongly suggests that stocks were undervalued, even at their 1929 peak
Why do Americans work so much more than Europeans? by Edward C Prescott ( Book )
11 editions published between 2003 and 2004 in English and held by 93 WorldCat member libraries worldwide
"Americans now work 50 percent more than do the Germans, French, and Italians. This was not the case in the early 1970s when the Western Europeans worked more than Americans. In this paper, I examine the role of taxes in accounting for the differences in labor supply across time and across countries, in particular, the effective marginal tax rate on labor income. The population of countries considered is that of the G-7 countries, which are major advanced industrial countries. The surprising finding is that this marginal tax rate accounts for the predominance of the differences at points in time and the large change in relative labor supply over time with the exception of the Italian labor supply in the early 1970s."--Federal Reserve Bank of Minneapolis web site
Unmeasured investment and the puzzling U.S. boom in the 1990s by Ellen R McGrattan ( Book )
18 editions published between 2007 and 2010 in English and held by 81 WorldCat member libraries worldwide
The basic neoclassical growth model accounts well for the postwar cyclical behavior of the U.S. economy prior to the 1990s, provided that variations in population growth, depreciation rates, total factor productivity, and taxes are incorporated. For the 1990s, the model predicts a depressed economy, when in fact the U.S. economy boomed. We extend the base model by introducing intangible investment and non-neutral technology change with respect to producing intangible investment goods and find that the 1990s are not puzzling in light of this new theory. There is compelling micro and macro evidence for our extension, and the predictions of the theory are in conformity with U.S. national products, incomes, and capital gains. We use the theory to compare current accounting measures for labor productivity and investment with the corresponding measures for the model economy with intangible investment. Our findings show that standard accounting measures greatly understate the boom in productivity and investment
Taxes, regulations and asset prices by Ellen R McGrattan ( Book )
12 editions published in 2001 in English and held by 75 WorldCat member libraries worldwide
Abstract: U.S. stock prices have increased much faster than gross domestic product (GDP) in the postwar period. Between 1962 and 2000, corporate equity value relative to GDP nearly doubled. In this paper, we determine what standard growth theory says the equity value should be in 1962 and 2000, the two years for which our steady-state assumption is a reasonable one. We find that the actual valuations were close to the theoretical predictions in both years. The reason for the large run-up in equity value relative to GDP is that the average tax rate on dividends fell dramatically between 1962 and 2000. We also find that, given legal constraints that effectively prohibited the holding of stocks as reserves for pension plans, there is no equity premium puzzle in the postwar period. The average returns on debt and equity are as theory predicts
The equity premium in retrospect by Rajnish Mehra ( Book )
10 editions published in 2003 in English and held by 70 WorldCat member libraries worldwide
Abstract: This article takes a critical look at the literature on equity premium puzzle - the inability of standard intertemporal economic models to rationalize the statistics that have characterized U.S. financial markets over the past century. A summary of historical returns for the United States and other industrialized countries and an overview of the economic construct itself are provided. The intuition behind the discrepancy between model prediction and empirical data is explained and the research efforts to enhance the model's ability to replicate the empirical data are summarized
Is the stock market overvalued? by Ellen R McGrattan ( Book )
12 editions published between 2000 and 2001 in English and held by 70 WorldCat member libraries worldwide
Abstract: The value of U.S. corporate equities in the first half of 2000 was close to 1.8 times U.S. gross national income. Some stock market analysts have argued that the market is overvalued at this level. We use standard economic theory and find that the market is correctly valued. In theory, the market value of equity plus debt liabilities should equal the value of productive assets plus debt assets. Since the net value of debt is currently low, the market value of equity should be approximately equal to the market value of productive assets. We find that the market value of productive assets is roughly 1.8 GNPs and is therefore in line with the market value of equity
Technology capital and the U.S. current account by Ellen R McGrattan ( )
15 editions published between 2006 and 2009 in English and held by 66 WorldCat member libraries worldwide
The U.S. Bureau of Economic Analysis (BEA) estimates the return on investments of foreign subsidiaries of U.S. multinational companies over the period 1982--2006 averaged 9.4 percent annually after taxes; U.S. subsidiaries of foreign multinationals averaged only 3.2 percent. Two factors distort BEA returns: technology capital and plant-specific intangible capital. Technology capital is accumulated know-how from intangible investments in R & D, brands, and organizations that can be used in foreign and domestic locations. Used abroad, it generates profits for foreign subsidiaries with no foreign direct investment (FDI). Plant-specific intangible capital in foreign subsidiaries is expensed abroad, lowering current profits on FDI and increasing future profits. We develop a multicountry general equilibrium model with an essential role for FDI and apply the BEA's methodology to construct economic statistics for the model economy. We estimate that mismeasurement of intangible investments accounts for over 60 percent of the difference in BEA returns
Openness, technology capital, and development by Ellen R McGrattan ( )
15 editions published between 2007 and 2008 in English and held by 65 WorldCat member libraries worldwide
In this paper, we extend the growth model to include firm-specific technology capital and use it to assess the gains from opening to foreign direct investment. A firm's technology capital is its unique know-how from investing in research and development, brands, and organization capital. What distinguishes technology capital from other forms of capital is the fact that a firm can use it simultaneously in multiple domestic and foreign locations. Foreign technology capital is exploited by permitting foreign direct investment by multinationals. In both steady-state and transitional analyses, the extended growth model predicts large gains to being open
Why did U.S. market hours boom in the 1990s? by Ellen R McGrattan ( Book )
7 editions published in 2006 in English and held by 63 WorldCat member libraries worldwide
Abstract: During the 1990s, market hours in the United States rose dramatically. The rise in hours occurred as gross domestic product (GDP) per hour was declining relative to its historical trend, an occurrence that makes this boom unique, at least for the postwar U.S. economy. We find that expensed plus sweat investment was large during this period and critical for understanding the movements in hours and productivity. Expensed investments are expenditures that increase future profits but, by national accounting rules, are treated as operating expenses rather than capital expenditures. Sweat investments are uncompensated hours in a business made with the expectation of realizing capital gains when the business goes public or is sold. Incorporating expensed and sweat equity into an otherwise standard business cycle model, we find that there was rapid technological progress during the 1990s, causing a boom in market hours and actual productivity
Technology adoption and growth by Stephen L Parente ( Book )
7 editions published in 1991 in English and held by 60 WorldCat member libraries worldwide
Technology change is modeled as the result of decisions of individuals and groups of individuals to adopt more advanced technologies. The structure is calibrated to the U.S. and postwar Japan growth experiences. Using this calibrated structure we explore how large the disparity in the effective tax rates on the returns to adopting technologies must be to account for the huge observed disparity in per capita income across countries. We find that this disparity is not implausibly large
Intermediated quantities and returns by Rajnish Mehra ( )
14 editions published between 2007 and 2008 in English and held by 55 WorldCat member libraries worldwide
The difference between average borrowing and lending rates in the United States is over 2 percent. In spite of this large difference, there is over 1.7 times GNP in 2007 of intermediated borrowing and lending between households. In this paper a model is developed consistent with these facts. The only difference within an age cohort is preferences for bequests. Individuals with little or no bequest motive are lenders, while individuals with strong bequest motive are borrowers and owners of productive capital. Given no aggregate uncertainty, the return on equity is the same as the household borrowing rate. The government can borrow at the household lending rate, so there is a 2 percent equity premium in our world with no aggregate uncertainty. We examine the distribution and life cycle patterns of asset holding and consumption and find there is large dispersion in asset holdings and little in consumption
The depressing effect of agricultural institutions on the prewar Japanese economy by Fumio Hayashi ( )
8 editions published in 2006 in English and held by 50 WorldCat member libraries worldwide
Abstract: The question we address in this paper is why the Japanese miracle didn't take place until after World War II. For much of the pre-WWII period, Japan's real GNP per worker was not much more than a third of that of the U.S., with falling capital intensity. We argue that its major cause is a barrier that kept agricultural employment constant at about 14 million throughout the prewar period. In our two-sector neoclassical growth model, the barrier-induced sectoral mis-allocation of labor and a resulting disincentive for capital accumulation account well for the depressed output level. Were it not for the barrier, Japan's prewar GNP per worker would have been close to a half of the U.S. The labor barrier existed because, we argue, the prewar patriarchy, armed with paternalistic clauses in the prewar Civil Code, forced the son designated as heir to stay in agriculture
Les richesses défendues troisième conférence Walras-Pareto revue et corrigée en octobre 1999, Université de Lausanne by Stephen L Parente ( Book )
7 editions published in 2002 in French and held by 42 WorldCat member libraries worldwide
Pourquoi tous les pays ne sont-ils pas aussi riches que les Etats-Unis? Traditionnellement, les inégalités reflèteraient la part de la production que chaque pays consacre à l'investissement. Stephen L. Parente et Edward C. Prescott pensent autrement. Dans cet ouvrage, les auteurs défendent la thèse selon laquelle ce sont les différences dans la "productivité totale des facteurs" (PTF) de chaque pays qui expliquent ces disparités
The computational experiment : an econometric tool by Finn E Kydland ( Book )
6 editions published between 1994 and 1998 in English and held by 35 WorldCat member libraries worldwide
On financing retirement with an aging population by Ellen R McGrattan ( )
4 editions published in 2013 in English and held by 34 WorldCat member libraries worldwide
A problem facing the United States is financing retirement consumption as its population ages. Policy analysts increasingly advocate savings-for-retirement systems, but are concerned with insufficient savings opportunities with limited government debt. This concern is unwarranted. First, there is more productive capital than commonly assumed in macroeconomic modeling. Second, if the policy reform subsumes the elimination of capital income taxes, then the value of business equity increases relative to the capital stock. Phasing in a switch from the current U.S. system to a savings-for-retirement system without capital income taxes increases welfare of all current and future cohorts
 
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Alternative Names
Prescott, Edward 1940-
Languages
English (234)
French (7)
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