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McKay, Alisdair

Works: 5 works in 36 publications in 1 language and 142 library holdings
Roles: Author
Classifications: HB1, 330
Publication Timeline
Publications about Alisdair McKay
Publications by Alisdair McKay
Most widely held works by Alisdair McKay
The brevity and violence of contractions and expansions by Alisdair McKay( Book )
16 editions published in 2006 in English and held by 31 libraries worldwide
Early studies of business cycles argued that contractions in economic activity were briefer (shorter) and more violent (rapid) than expansions. This paper systematically investigates this claim and in the process discovers a robust new business cycle fact: expansions and contractions in output are equally brief and violent but contractions in employment are briefer and more violent than expansions. The difference arises because employment typically lags output around peaks but both series roughly coincide in their troughs. We discuss the performance of existing business cycle models in accounting for this fact, and conclude that none can fully account for it. We then show that a simple model that combines three familiar ingredients-labor hoarding, a choice of when to scrap old technologies, and job training or job search-can account for the business cycle fact
The role of automatic stabilizers in the U.S. business cycle by Alisdair McKay( Book )
11 editions published in 2013 in English and held by 13 libraries worldwide
Most countries have automatic rules in their tax-and-transfer systems that are partly intended to stabilize economic fluctuations. This paper measures how effective they are. We put forward a model that merges the standard incomplete-markets model of consumption and inequality with the new Keynesian model of nominal rigidities and business cycles, and that includes most of the main potential stabilizers in the U.S. data, as well as the theoretical channels by which they may work. We find that the conventional argument that stabilizing disposable income will stabilize aggregate demand plays a negligible role on the effectiveness of the stabilizers, whereas tax-and-transfer programs that affect inequality and social insurance can have a large effect on aggregate volatility. However, as currently designed, the set of stabilizers in place in the United States has barely had any effect on volatility. According to our model, expanding safety-net programs, like food stamps, has the largest potential to enhance the effectiveness of the stabilizers
Rational inattention to discrete choices : a new foundation for the multinomial logit model by Filip Matějka( Book )
3 editions published in 2011 in English and held by 3 libraries worldwide
The Power of Forward Guidance Revisited by Alisdair McKay( Book )
5 editions published in 2015 in English and held by 3 libraries worldwide
In recent years, central banks have increasingly turned to "forward guidance" as a central tool of monetary policy, especially as interest rates around the world have hit the zero lower bound. Standard monetary models imply that far future forward guidance is extremely powerful: promises about far future interest rates have huge effects on current economic outcomes, and these effects grow with the horizon of the forward guidance. We show that the power of forward guidance is highly sensitive to the assumption of complete markets. If agents face uninsurable income risk and borrowing constraints, a precautionary savings effect tempers their responses to far future promises about interest rates. As a consequence, the ability of central banks to combat recessions using small changes in interest rates far in the future, is greatly reduced relative to the complete markets benchmark. We show that the effects of precautionary savings motives can be captured by a simplified version of our model that generates discounting in the representative agent's Euler equation. This discounted Euler equation can be easily included in standard business cycle models
Essays on macroeconomics by Alisdair McKay( Archival Material )
1 edition published in 2010 in English and held by 2 libraries worldwide
Alternative Names
MacKay, Alisdair
Mc Kay, Alisdair
McKay, Alisadair
McKay, Alisdair
McKay, Alisdair G.
English (36)
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