Senior Fellows/Fellows

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2025

Challenges in Consumer Price Index Construction

W. Erwin DIEWERT, Chihiro SHIMIZU
The paper discusses many of the problems that compilers of a Consumer Price Index face. The paper also provides a survey of the four main approaches to bilateral index number theory. These approaches are used by National Statistical Offices to construct their CPIs but these approaches cannot deal wi...
Keywords: Index number theory, multilateral indexes, the chain drift problem, the lack of matching problem, test approach, stochastic approach, economic approach, hedonic regressions, the Commensurability Test
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Senior Fellows/Fellows

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2025

Stablecoins A Revolutionary Payment Technology with Financial Risks

Rashad AHMED, James A. CLOUSE, Fabio NATALUCCI, Alessandro REBUCCI, Geyue SUN
The GENIUS Act, recently signed into law, establishes a dual federal and state regulatory framework for stablecoins, effectively segmenting the USD stablecoin market into GENIUS-compliant stablecoins and those that are not. This paper discusses the use cases and potential benefits of stablecoins in ...
Keywords: Cryptocurrency, digital assets, financial stability, payments, stablecoins
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Senior Fellows/Fellows

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2025

Beyond the Bubble: Structural Drivers of Tokyo’s High Housing Prices

Chihiro SHIMIZU
This study develops and empirically tests a unified equilibrium model of the housing market. The model integrates user-cost theory, expectation formation, and urban growth dynamics. Using monthly data for the Tokyo metropolitan area from 1986 to 2025, the model jointly estimates housing prices, rent...
Keywords: Housing prices, User cost, Price-to-rent ratio, Urban redevelopment, Cointegration (Johansen test), VECM, Counterfactual simulation, Structural appreciation, Expectations, Tokyo housing market
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2025

Managing Financial Crises

Gianluca BENIGNO, Alessandro REBUCCI, Aliaksandr ZARETSKI
In this paper, we revisit the question of how to manage financial crises using the framework proposed by Bianchi and Mendoza (2018). We show that this model economy exhibits a multiplicity of constrained-efficient equilibria, which arises because the private shadow value of collateral influences the...
Keywords: constrained efficiency, financial crises, macroprudential policy, optimal policy, pecuniary externalities, time consistency
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Senior Fellows/Fellows

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2025

Banking on Technology: Bank Technology Adoption and Its Effects

Sheila JIANG, Alessandro REBUCCI, Gang ZHANG
We develop and estimate a new model of endogenous growth in bank efficiency and firm productivity in which banks adopt technology embedded in capital goods produced by entrepreneurs, and agents choose whether to become workers or capital-good-producing entrepreneurs. In this framework, bank efficien...
Keywords: Bank efficiency, Cost of Intermediation, Growth, Firm Size Distribution, Technology Adoption, Productivity
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