Central bank research hub - Papers by Jonathan L. Willis
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Research hub papers by author Jonathan L. WillisenNew Exporter Dynamics
http://www.kansascityfed.org/publicat/reswkpap/pdf/rwp14-10.pdf
Kansas City Fed Working Papers by Kim J. Ruhl and Jonathan L. WillisNew Exporter Dynamics2014-11-21T06:21:00ZModels in which heterogeneous plants face sunk export entry costs are standard tools in the international trade literature. How well do these models account for the observed dynamics of new exporters? We document that new exporters initially export small amounts and conditional on continuing in the export market grow gradually over several years. New exporters are most
likely to exit the export market in their first few years. We construct a dynamic discrete choice model of exporting and find that the standard model cannot replicate the behavior of new exporters:
New exporters grow too large too quickly and live too long. We assess the quantitative importance of accounting for new exporter dynamics by extending the model to account for these facts. In this model, the present value of exporting falls relative to the baseline model. As a result,the entry costs needed to account for the data are three times smaller than in the baseline model.New Exporter DynamicsFull texthttp://www.kansascityfed.org/publicat/reswkpap/pdf/rwp14-10.pdfKim J. RuhlJonathan L. WillisKim J. Ruhl and Jonathan L. Willis2014-11Federal Reserve Bank of Kansas City Research Working PapersEuler-Equation Estimation for Discrete Choice Models: A Capital Accumulation Application
http://www.kc.frb.org/PUBLICAT/RESWKPAP/PDF/RWP10-04.pdf
Kansas City Fed Working Papers by Russell Cooper, John Haltiwanger, Jonathan L. WillisEuler-Equation Estimation for Discrete Choice Models: A Capital Accumulation Application2010-01-29T18:17:00ZThis paper studies capital adjustment at the establishment level. Our goal is to characterize capital adjustment costs, which are important for understanding both the dynamics of aggregate investment and the impact of various policies on capital accumulation. Our estimation strategy searches for parameters that minimize ex post errors in an Euler equation. This strategy is quite common in models for which adjustment occurs in each period. Here, we extend that logic to the estimation of parameters of dynamic optimization problems in which non-convexities lead to extended periods of investment inactivity. In doing so, we create a method to take into account censored observations stemming from intermittent investment. This methodology allows us to take the structural model directly to the data, avoiding time-consuming simulation-based methods. To study the effectiveness of this methodology, we ?rst undertake several Monte Carlo exercises using data generated by the structural model. We then estimate capital adjustment costs for U.S. manufacturing establishments in two sectors.Euler-Equation Estimation for Discrete Choice Models: A Capital Accumulation ApplicationAbstracthttp://www.kc.frb.org/PUBLICAT/RESWKPAP/Rwp10-04.htmFull texthttp://www.kc.frb.org/PUBLICAT/RESWKPAP/PDF/RWP10-04.pdfRussell CooperJohn HaltiwangerJonathan L. WillisRussell Cooper, John Haltiwanger, Jonathan L. Willis2010-01Federal Reserve Bank of Kansas City Research Working PapersMind the (Approximation) Gap: A Robustness Analysis
http://www.kc.frb.org/PUBLICAT/RESWKPAP/PDF/RWP09-02.pdf
Kansas City Fed Working Papers by Russell Cooper and Jonathan L. WillisMind the (Approximation) Gap: A Robustness Analysis2009-01-22T09:35:59ZThis note continues the discussion of the results reported by Ricardo Caballero and Eduardo Engel (1993), hereafter CE, and Ricardo Caballero, Eduardo Engel, and John Haltiwanger (1997), hereafter CEH, by responding to the results reported in Christian Bayer (2008). Russell Cooper and Jonathan Willis (2004), hereafter CW, find that the aggregate nonlinearities reported in CE and CEH may be the consequence of mismeasurement of the employment gap rather than nonlinearities in plant-level adjustment. Bayer reassesses this finding in the context of the CE model in the case where static employment gaps are observed and concludes that the CW result is not robust to alternative shock processes. We concur with Bayer's assessment that the nonlinearity finding is sensitive to the aggregate profitability shock process. We argue, however, that Bayer's finding does not imply that the mismeasurement problem goes away. Instead, the nonlinearity created by mismeasurement is directly related to the level of the aggregate shock. Once the empirical specification properly incorporates the aggregate shock, the nonlinearity test is robust to alternative shock processes and confirms the results in CW. More importantly, we demonstrate that the CW findings are robust to alternative shock processes for the natural case of unobserved gaps as examined by CE and CEH. JEL Classification: E24, J23, J64Keywords: Aggregate Employment, Employment, Adjustment CostsMind the (Approximation) Gap: A Robustness AnalysisAbstracthttp://www.kc.frb.org/PUBLICAT/RESWKPAP/Rwp09-02.htmFull texthttp://www.kc.frb.org/PUBLICAT/RESWKPAP/PDF/RWP09-02.pdfRussell CooperJonathan L. WillisRussell Cooper and Jonathan L. Willis2009-01Federal Reserve Bank of Kansas City Research Working PapersE24J23J64Real Rigidities and Nominal Price Changes
http://www.kc.frb.org/Publicat/Reswkpap/PDF/RWP06-03.pdf
Kansas City Fed Working Papers by Peter J. Klenow and Jonathan L. WillisReal Rigidities and Nominal Price Changes2006-04-11T08:48:00ZReal Rigidities and Nominal Price ChangesAbstracthttp://www.kc.frb.org/Publicat/Reswkpap/RWP06-03.htmFull texthttp://www.kc.frb.org/Publicat/Reswkpap/PDF/RWP06-03.pdfPeter J. KlenowJonathan L. WillisPeter J. Klenow and Jonathan L. Willis2006-03Federal Reserve Bank of Kansas City Research Working PapersE3L16The Cost of Labor Adjustment: Inferences from the Gap
http://www.kc.frb.org/Publicat/Reswkpap/pdf/RWP02-11.pdf
Kansas City Fed Working Papers by Russell Cooper and Jonathan L. WillisThe Cost of Labor Adjustment: Inferences from the Gap2004-04-23T09:58:59ZThe Cost of Labor Adjustment: Inferences from the GapAbstracthttp://www.kc.frb.org/Publicat/Reswkpap/RWP02-11.htmFull texthttp://www.kc.frb.org/Publicat/Reswkpap/pdf/RWP02-11.pdfRussell CooperJonathan L. WillisRussell Cooper and Jonathan L. Willis2002-12Federal Reserve Bank of Kansas City Research Working PapersE24J23J6The Economics of Labor Adjustment: Mind the Gap
http://www.kc.frb.org/Publicat/Reswkpap/pdf/RWP03-05.pdf
Kansas City Fed Working Papers by Russell Cooper and Jonathan L. WillisThe Economics of Labor Adjustment: Mind the Gap2004-04-23T09:54:59ZThe Economics of Labor Adjustment: Mind the GapAbstracthttp://www.kc.frb.org/Publicat/Reswkpap/RWP03-05.htmFull texthttp://www.kc.frb.org/Publicat/Reswkpap/pdf/RWP03-05.pdfRussell CooperJonathan L. WillisRussell Cooper and Jonathan L. Willis2003-07Federal Reserve Bank of Kansas City Research Working PapersE24J23J6Dynamics of Labor Demand: Evidence from Plant-level Observations and Aggregate Implications
http://www.kc.frb.org/Publicat/Reswkpap/pdf/RWP03-12.pdf
Kansas City Fed Working Papers by Russell Cooper, John Haltiwanger, and Jonathan L. WillisDynamics of Labor Demand: Evidence from Plant-level Observations and Aggregate Implications2004-04-23T09:54:59ZDynamics of Labor Demand: Evidence from Plant-level Observations and Aggregate ImplicationsAbstracthttp://www.kc.frb.org/Publicat/Reswkpap/RWP03-12.htmFull texthttp://www.kc.frb.org/Publicat/Reswkpap/pdf/RWP03-12.pdfRussell CooperJohn HaltiwangerJonathan L. WillisRussell Cooper, John Haltiwanger, and Jonathan L. Willis2003-12Federal Reserve Bank of Kansas City Research Working PapersE24J23J6