Browsing by Author "Eichenbaum, Martin"

Capital Utilization and Returns to Scale

Burnside, A Craig; Eichenbaum, Martin; Rebelo, Sergio T (1995)

This paper studies the implications of procyclical capital utilization rates for inference regarding cyclical movements in labor productivity and the degree of returns to scale. We organize our investigation around five ...

Government guarantees and self-fulfilling speculative attacks

Eichenbaum, Martin; Rebelo, Sergio (Journal of Economic Theory, 2004-11-01)

We develop a model in which government guarantees to banks' foreign creditors are a root cause of self-fulfilling twin banking-currency crises. Absent guarantees, such crises are not possible. In the presence of guarantees ...