Serving the public with innovative research and analysis
Join us on Tuesday, February 7 at 10:30 am PT, for a live discussion on Inflation and the Economy with Research Director Sylvain Leduc.
Sylvain will cover the drivers of high inflation, current labor market dynamics, and the Fed’s efforts to restore price stability, and answer pre-submitted questions from the public. Register and submit questions through our event page.
Adam Shapiro, vice president at the Federal Reserve Bank of San Francisco, stated his views on the current economy and the outlook as of January 12, 2023.
Global supply chain disruptions due to the COVID-19 pandemic have increased the costs of trade between countries. Given the interconnectedness of the U.S. economy with the rest of the world, higher trade costs can have important impacts on U.S. labor markets. A model of the U.S. economy that incorporates variation in industry concentrations across regions can help quantify these effects. The analysis suggests that recent global supply disruptions could cause a sizable and persistent reduction in labor force participation.
Who bears the consequences of administrative problems in healthcare? We use data on repeated interactions between a large sample of U.S. physicians and many different insurers to document the complexity of healthcare billing, and estimate its economic costs for doctors and consequences for patients. Observing the back-and-forth sequences of claim denials and resubmissions for past visits, we can estimate physicians’ costs of haggling with insurers to collect payments. Combining these costs with the revenue never collected, we estimate that physicians lose 18% of Medicaid revenue to billing problems, compared with 4.7% for Medicare and 2.4% for commercial insurers. Identifying off of physician movers and practices that span state boundaries, we find that physicians respond to billing problems by refusing to accept Medicaid patients in states with more severe billing hurdles. These hurdles are quantitatively just as important as payment rates for explaining variation in physicians’ willingness to treat Medicaid patients. We conclude that administrative frictions have first-order costs for doctors, patients, and equality of access to healthcare. We quantify the potential economic gains—in terms of reduced public spending or increased access to physicians—if these frictions could be reduced, and find them to be sizable.
The China Cyclical Activity Tracker, China CAT, is an alternative measure of China's economic growth based on research in Fernald, Hsu, and Spiegel (2019).
Cyclical and Acyclical Core PCE Inflation divides components of core personal consumption expenditures according to whether they move in tandem with economic cycles or are independent of the state of the overall economy.
The Daily News Sentiment Index is a high frequency measure of U.S. economic sentiment based on lexical analysis of economics-related news articles.
Inflation Sensitivity to COVID-19 divides core personal consumption expenditures inflation into components that are sensitive and insensitive to the economic disruptions caused by the pandemic.
PCE Inflation Dispersion statistics present a more detailed summary of the personal consumption expenditure price index (PCEPI), a measure of U.S. inflation. Included are measures of the distribution of price changes across categories and diffusion indices.
The Proxy Funds Rate uses a broad set of financial market indicators to assess the stance of monetary policy. The proxy rate can be interpreted as indicating what federal funds rate would typically be associated with prevailing financial market conditions if the federal funds rate were the only monetary policy tool being used.
The SF Fed Data Explorer is an interactive tool that gives users the ability to explore, analyze, and download detailed data for various groups of people in the U.S. labor market. The data come from responses to the monthly Current Population Survey (CPS).
Supply- versus Demand-Driven PCE Inflation determines the monthly contributions to both headline and core personal consumption expenditures (PCE) inflation from supply-driven versus demand-driven components.
Total Factor Productivity (TFP) presents a real-time, quarterly data series for the U.S. business sector, adjusted for variations in factor utilization—labor effort and capital's workweek.
The Treasury yield premium model decomposes nominal bond yields of various maturities into three components: expectations of the average future short-term interest rate, a term premium, and a model residual.
This page provides estimates of weather-adjusted employment change in the United States for the past six months. The estimates are aggregated from county-level estimates of weather's employment effects, which were derived from a county-level analysis of the short-run effects of unusual weather on employment growth.