Bansal also posits that cash flows on particular portfolios differ in the extent to which they are subject to
long-run risks that are more or less correlated with the
long-run risk in aggregate consumption.
Lousy economic performance currently has depressed stocks, but the market has some optimism about the
long-run outlook and hasn't given up on the idea that growth in productivity will return in the years ahead.
Because the purchase of a home is a long-term investment, we find that the impact on home prices is negligible, similar to the
long-run impact on rents.
For example, Lucas (1972) and Sargent (1971) provide examples in which it is impossible to test
long-run neutrality using reduced-form econometric methods.
According to the authors, these three factors -- all potentially harmful consequences of inflation -- all tend to rise as
long-run inflation rises from low to moderate levels.
Point estimates of
long-run effects can be easily extracted from equation A.
Schemes of employee ownership and participation not only appear to improve productivity over the short term but they may also improve prospects for
long-run growth, since employees typically have a higher stake in the continuing viability of an enterprise than do either managers or investors.
Also, once a year in January the author writes an extensive review of the
long-run capital markets, going back to 1926, discussing the risk-reward characteristics of these markets and how the recent past stacks up against this history.
Curiously, during most of the postwar period the empirical evidence on
long-run monetary neutrality has been in a state of flux.
These surpluses both reduce the national debt and improve the
long-run fiscal condition of social security.
Also, once a year in January an extensive review of the
long-run capital markets is written, going back to 1926, discussing the risk-reward characteristics of these markets and how the recent past stacks up against this history.
Capacity utilization in advanced-processing industries fell to a level a little below its
long-run average, while the operating rate in primary-processing industries was 3.
Also, once a year in January we write an extensive review of the
long-run capital markets, going back to 1926, discussing the risk-reward characteristics of these markets and how the recent past stacks up against this history.
FRB/US allows for the gradual adjustment of expectations about some key
long-run conditions to changes in policy objectives so as to mimic the process of learning.
Particularly when we are addressing the problem of the
long-run structural deficit, the focus should be on how fiscal actions affect the potential of the economy to produce greater output and taxable income on a sustained, ongoing basis.
