Huw Lloyd-Ellis

Huw Lloyd-Ellis
Queen's University | QueensU · Department of Economics

About

33
Publications
3,579
Reads
How we measure 'reads'
A 'read' is counted each time someone views a publication summary (such as the title, abstract, and list of authors), clicks on a figure, or views or downloads the full-text. Learn more
1,206
Citations

Publications

Publications (33)
Article
We study the composition of the housing stock across ownership and rental markets in a dynamic model of frictional assignment. Houses are rented or sold to heterogeneous households that sort over quality. Due to matching frictions and an increasing ownership surplus, wealthy households tend to own and lower value housing tends to be rented, even wi...
Article
en The dramatic rise in the ratio of Canada's average house price to average rent has led to speculation that there is a bubble in the Canadian housing market. Others have argued, however, that the currently high level of house prices may be rationalized by the low cost of financing, given the decline in interest rates over the last two decades. In...
Article
We develop a theory of growth and cycles that endogenously relates job flows, worker flows and wages over the cycle to the processes of restructuring, innovation and implementation that drive long-run growth. Expansions are the result of clustered implementation of new ideas and recessions are the negative consequence of the restructuring that anti...
Article
Full-text available
We characterize the dynamics of relative house prices, construction rates and popu-lation growth across US cities. We …nd that, in response to shocks to relative incomes, construction rates and population growth exhibit quite di¤erent short-run dynamics and that price appreciation exhibits considerable both short-run serial correlation and long-run...
Article
Full-text available
The dynamics of house prices, vacancies, and construction are studied in a search model of the housing market in which both construction and the entry of buyers are de-termined in equilibrium. The theory accounts for substantial positive serial correlation in house price appreciation in the short/medium run with mean reversion in the long run, even...
Article
Recent empirical work finds that R&D expenditures are quite pro-cyclical even for firms that are not credit-constrained during downturns. This has been taken as strong evidence against Schumpeterian-style theories of business cycles that emphasize the idea that downturns in production may be good times to allocate labor towards innovative activitie...
Article
Full-text available
We study the interactions among geographical mobility, unemployment, and home-ownership in an economy with heterogeneous locations, endogenous construction, and search frictions in the markets for both labour and housing. The decision of home-owners to accept job offers from other cities depends on how quickly they can sell their houses (i.e. the h...
Article
We develop a model of “intrinsic” cycles, driven by the decentralized behavior of entrepreneurs and firms making continuous, divisible improvements in their productivity. We show that when the introduction of productivity improvements is endogenous, implementation cycles arise even in the presence of reversible investment and consumption smoothing....
Article
Full-text available
We use a Schumpeterian model in which both the economy's growth rate and its volatility are endogenously determined to assess some welfare and policy implications associated with business cycle fluctuations. Because it features a higher average growth rate than its acyclical counterpart, steady-state welfare is higher along the cyclical equilibrium...
Article
The return to "sound" fiscal policy after the high budget deficits of the 1980s and early 1990s has been hailed by many as the Clinton administration's most important achievement. We evaluate post-war, U.S. fiscal policy using a generalized tax-smoothing model that allows for stochastic interest rates and growth rates. We show that contrary to conv...
Article
Full-text available
The research agendas of psychologists and economists now have several overlaps, with behavioural economics providing theoretical and experimental study of the relationship between behaviour and choice, and hedonic psychology discussing appropriate measures of outcomes of choice in terms of overall utility or life satisfaction. Here we model the rel...
Article
Full-text available
In this article we argue that the evaluation and implementation of Canadian fiscal policy could be significantly improved through the systematic use of information provided by global financial markets. In particular, we show how the information contained in internationally traded asset returns can be used to (1) provide a more meaningful cyclical-a...
Article
Full-text available
We show how a Schumpeterian process of creative destruction can induce rational, herd behavior by entrepreneurs across diverse sectors as if fueled by "animal spirits." Consequently, a multisector economy, in which productivity improvements are made by independent, profit-seeking entrepreneurs, exhibits regular booms, slowdowns, and downturns as pa...
Article
We explore the implications of endogenous credit market imperfections for the endogenous relationship between investment insecurity and the process of economic development. In the initial stages of development, the fraction of agents engaged in nonproductive diversionary activities (e.g. rent-seeking) grows as the opportunities to gain from diversi...
Article
Full-text available
Au début des années 1990, la traditionnelle relation de compromis «équité-efficacité» a été mise en question par des preuves empiriques suggérant que l'inégalité des revenus avait un impact négatif sur la croissance. Cela a encouragé le développement de plusieurs théories alternatives fondées sur des marchés incomplets, et de travaux empiriques des...
Article
We develop an endogenous growth model in which skill acquisition by households and innovation by firms make distinct contributions to productivity growth. Nevertheless, the incentives faced by firms and households are inextricably linked because skills are required to implement new technologies. Skills and technologies are dynamic complements but,...
Article
Full-text available
This article surveys the literature surrounding the ongoing debate as to the importance of embodied technical change (ETC) and investment—speciÞc technological change (IST) in driving labour productivity growth. In particular, it emphasizes that (1) ETC and IST are distinct concepys, (2) the measurement of the rates of both ETC and IST are problema...
Article
We show how a Schumpeterian process of creative destruction can induce coordination in the timing of entrepreneurial activities across diverse sectors of the economy. Consequently, a multisector economy, in which sectorspecic, productivity improvements are made by independent, protseeking entrepreneurs, can exhibit regular booms, slowdowns and down...
Article
Full-text available
The return to sound fiscal policy after the high budget deficits of the 1980s and early 1990s has been hailed by many as the Clinton administration's most important achievement. In this article, we evaluate post-war, US fiscal policy using an extension of Barro's (1979) tax-smoothing model, generalized to allow for stochastic variation in interest...
Article
Full-text available
We develop an endogenous growth model in which new technology and new skills are bounded complements they complement each other up to a point, but beyond this the impact of each factor is constrained by the level of the other. As a result, both technological progress and human capital accumulation are necessary for sustained productivity growth, bu...
Article
Full-text available
We characterize an equilibrium development process driven by the interaction of the distribution of wealth with credit constraints and the distribution of entrepreneurial skills. When efficient entrepreneurs are relatively abundant, a "traditional" development process emerges in which the evolution of macroeconomic variables accord with empirical r...
Article
This article develops a dynamic general equilibrium model in which the occupational structure of the economy drives a wedge between the social and private returns to schooling for some workers. I study the impacts of alternative allocations of public resources between basic and higher levels of education on enrollments, income distribution, and gro...
Article
Full-text available
Although microeconomic studies find a positive relationship between R&D and skill premia, much of the recent rise in U.S. wage inequality was accompanied by slowing labor-productivity growth and relatively slow introduction of new technologies. These conflicting observations are consistent with the effects of a skewed distribution of 'absorptive ca...
Article
We explore the implications of endogenous credit market imperfections for the relationship between property crime and the process of economic development. In the initial stages of development, property crime rises as the opportunities to gain from illegal activities expand. In later stages, however, crime falls as capital market imperfections are o...
Article
We use the returns on a set of international financial securities to identify exogenous shocks to the Canadian federal surplus. We find that a large portion of the variation in the surplus can be replicated by a linear combination of these returns and that the recent rise in debt resulted from adverse shocks and a delayed response by the government...
Article
This paper examines the impact of education and occupational choice on the growth-inequality relationship. Occupations that play asymmetric roles in the production process are distinguished. The dynamic evolution of the detrended distribution of income is characterized and shown to converge to an endogenous, non-degenerate, stationary distribution....
Article
We characterize an equilibrium development process driven by the interaction of the distribution of wealth with credit constraints and the distribution of entrepreneurial skills. When efficient entrepreneurs are relatively abundant, a “traditional” development process emerges in which the evolution of macroeconomic variables accord with empirical r...
Article
In this paper we estimate a Type 2 Tobit model to explain both the timing and quantity of developing country debt rescheduling using an annual data set for 27 countries from 1977–1981 and six-monthly data for 59 countries from 1977–1985. We obtain a satisfactory model for both the timing and quantity of rescheduling which will be more useful for co...
Article
In this paper we estimate a Type 2 Tobit model to explain both the timing and quantity of developing country debt rescheduling using an annual data set for 27 countries from 1977–1981 and six-monthly data for 59 countries from 1977–1985. We obtain a satisfactory model for both the timing and quantity of rescheduling which will be more useful for co...
Article
In this study we utilise data relating to the balance sheets of developing countries (e.g. short-term debt) in a logit model of debt rescheduling. We find that such variables are theoretically and empirically superior to those conventionally used (such as debt-export ratios). The study is based upon an annual sample of 27 countries for 1977–1981 an...
Article
Full-text available
The relationship between unemployment and the value of owner-occupied housing is studied in an economy with heterogeneous locations and search frictions in the mar- kets for both labour and houses. Dierences in labour market conditions between cities aect the liquidity of houses (i.e. the speed with which houses may be transferred be- tween househo...
Article
Foreign reserves have been growing rapidly since the mid 1990s in emerging economies hit by Sudden Stops (SS). For policy makers and researchers, this large buildup of reserves re∞ects a new policy that emerging economies have taken to insure against the risk of future SS. In this paper we have argue that the observed increase in foreign exchange h...
Article
Thesis (Ph. D.)--Queen's University, 1993. Includes bibliographical references (leaves 227-232). Photocopy.

Network

Cited By