Download the entire issue (998 KB, 31 pages)
Why do firms tend to locate near other firms? Economists suspect that
geographic clustering spurs innovation by letting businesses tap a climate
rich in informal transfers of knowledge. By tracing links between inventors
filing for patents for the same inventions, Jeffrey Lin shares new evidence
supporting the idea that proximity offers businesses tangible benefits.
Full article (258 KB, 6 pages).
In recent decades, institutions that function much like traditional banks
have grown outside regulatory oversight. Yet, as Daniel Sanches explains, these so-called shadow banks are as vulnerable to runs as regular banks. Because banking crises can inflict lasting economic harm, economists are interested in tracing how the panic ensued in the shadow system.
Full article (249 KB, 8 pages).
To enact effective policies and spend resources efficiently, firms,
policymakers, and markets need accurate economic forecasts. But even
though economists generally work with similar models and data, their
projections often range widely. To better understand why, Keith Sill
explores what the evidence and theories say about how forecasters form
Full article (362 KB, 10 pages).
Abstracts of the latest working papers produced by the Research Department of the Federal Reserve Bank of Philadelphia. (155 KB, 3 pages).
Download the entire issue (1.5 MB, 36 pages)
Given the importance of international trade for economic growth, why
in any given year do few U.S. firms export their wares, and why are most
U.S. goods not traded with most countries? Roc Armenter presents some intriguing evidence suggesting the U.S. does export most of its products to most countries, just not very often.
Full article (579 KB, 8 pages).
What determines where businesses and households locate? Location decisions can affect the economic health of cities and metropolitan areas. But as Jeffrey Brinkman explains, how firms, residents, and workers go about choosing where to locate can involve complex interactions with sometimes unpredictable consequences.
Full article (609 KB, 7 pages).
Even before the Great Recession, housing market bubbles have been associated with severe financial crises around the world. Why do these booms and busts occur? Leonard Nakamura explains that part of the answer may lie with how mortgage lending practices appear to respond to
rising and falling house prices in somewhat unexpected ways.
Full article (508 KB, 9 pages).
Mitchell Berlin summarizes new research on household finance
presented at a joint conference sponsored by the Federal Reserve Bank of
Philadelphia's Research Department and Payment Cards Center.
Full article (240 KB, 6 pages).
Abstracts of the latest working papers produced by the Research Department of the Federal Reserve Bank of Philadelphia. (154 KB, 2 pages).