Empirical evidence suggests financial intermediaries increase risky investments when interest rates are low. We develop a model consistent with this observation and ask w[...]

Supplemental material for peer-reviewed article published in European Economic Review. Paper published online January, 2026. When citing this dataset, please also cite th[...]

A view advanced in the aftermath of the late-2000s financial crisis is that lower than optimal interest rates lead to excessive risk taking by financial intermediaries. W[...]

This paper analyses the Canadian economy for the post 1960 period. It uses an accounting procedure developed in Chari, Kehoe, and McGrattan (2006). The procedure identifi[...]

From 1961 to 2007, U.S. aggregate hours worked increased and the labor wedge-measured as the discrepancy between a representative household's marginal rate of substitutio[...]

We develop a model in which a financial intermediary's investment in risky assets—risk taking—is excessive due to limited liability and deposit insurance, and characteriz[...]

Demographic projections show the majority of OECD economies will see declines in their working-age populations in the coming decades. This is potentially problematic, sin[...]

From 1980 until 2007, U.S. average hours worked increased by thirteen percent, due to a large increase in female hours. At the same time, the U.S. labor wedge, measured a[...]

We construct quarterly US average hours worked using Current Population Survey data on employed persons at work and their actual hours worked. Our methodology can be appl[...]