Students play a game to experience gaining the reward that comes with positive incentives and paying the penalty that comes with negative incentives. Varieties of incentives are introduced to discuss types of incentives, what behavior they are trying to encourage or discourage, and who creates these incentives. After applying their gained knowledge of incentives, students are assessed by creating an incentive following a step-by-step guide and then presenting it to the class.

The severity of the Great Recession (2007-09) forced many people into foreclosure and prevented others from buying homes because of tightened lending standards or reduced income. Did the recession affect homeownership in later years?

During a Dialogue with the Fed event in September 2020, Assistant Vice President and Lead Economist in Supervision William R. Emmons looked at homeownership rates among different age groups to glean any differences.

Rather than examine the overall ownership rate, Emmons examined rates among different age groups and compared their homeownership rates at comparable ages. For example, the homeownership rate among older members of Gen X (those born between 1965 and 1972) in 2019, when their approximate average age was 50, was compared with the average rate among young baby boomers (those born from 1956 to 1964) in 2009, when their average age was about 50, according to a displayed figure.

FRED Blog posts have discussed patent royalties, R&D, and the balance of payments and the changing geography of U.S. innovation. Today, we tap into a recently added data set from the U.S. Patent and Trademark Office to discuss the distribution of patented new ideas across U.S. states.

The GeoFRED map above shows the number of patents registered in each state during 2019, which is the latest available data point as of this writing. The total number of new patents for the whole country was 186,022, and the map illustrates their uneven geographical distribution. While California recorded 50,667 patents, Maine recorded 249. That might be expected simply because the population isn’t evenly distributed across the country: For each Mainer, there are 29 Californians. But it’s not all about population.

The second graph shows the number of patents divided by the number of persons (in thousands) residing in each state in 2019. At the top of the graph is...

By YiLi Chien, Research Officer and Economist, and Julie Bennett, Research Associate

Inflation has been one of the hottest topics in 2021 thus far. A variety of factors—including low interest rates, pent-up demand and stimulus checks—have sparked discussion about increased inflation as the U.S. prepares to transition into a post-pandemic economy.

As the COVID-19 pandemic commenced, the 12-month rate of personal consumption expenditures (PCE) inflation dipped substantially, falling from 1.8% in February 2020 to 0.5% in April 2020. Since then, the inflation rate has largely trended upward, clocking in at 2.3% for March 2021 (the most recent data published).

The prices for goods and services, however, do not all change at the same rate. In this blog post, we examine the inflationary trends of different components of the PCE price index (PCEPI) over the previous two economic expansions, as well as how each component has contributed to recent inflation...

The severity of the Great Recession (2007-09) forced many people into foreclosure and prevented others from buying homes because of tightened lending standards or reduced income. Did the recession affect homeownership in later years?

During a Dialogue with the Fed event in September 2020, Assistant Vice President and Lead Economist in Supervision William R. Emmons looked at homeownership rates among different age groups to glean any differences.

Rather than examine the overall ownership rate, Emmons examined rates among different age groups and compared their homeownership rates at comparable ages. For example, the homeownership rate among older members of Gen X (those born between 1965 and 1972) in 2019, when their approximate average age was 50, was compared with the average rate among young baby boomers (those born from 1956 to 1964) in 2009, when their average age was about 50, according to a displayed figure.

By William R. Emmons, Lead Economist in Supervision

The nationwide house price-to-rent ratio, a widely used measure of housing valuation that is analogous to the price-to-dividend ratio for the stock market, is at its highest level since at least 1975, as shown in the figure below. Rapid house price appreciation since last May, combined with a slowdown in rent growth, resulted in a surge in this ratio. By February 2021, the national house price-to-rent ratio had surpassed the previous peak reached in January 2006; in March 2021, the ratio was 1% higher than its level at the peak of the housing bubble. This suggests the average house now sells for quite a bit more than its “fair value,” as explained below.

At the Federal Reserve Bank of St. Louis, we believe the Federal Reserve most effectively serves the American public by building a more diverse and inclusive economy. Our commitment to diversity and inclusion, at all levels of the organization, has been one of our core values for many years and remains strong as we work to continue enhancing our efforts.

At the Federal Reserve Bank of St. Louis, we believe the Federal Reserve most effectively serves the American public by building a more diverse and inclusive economy. Our commitment to diversity and inclusion, at all levels of the organization, has been one of our core values for many years and remains strong as we work to continue enhancing our efforts.

You are receiving this newsletter because you subscribed via our website or agreed to receive emails from the St. Louis Fed. To ensure you continue to receive the latest Central Banker: News and Notes from the St. Louis Fed, add us to your address book. Want to change how you receive these emails? You can update your preferences or unsubscribe from all lists.

The U.S. economy is strengthening quickly while facing temporary headwinds such as a shortage of semiconductor chips. Forecasters expect continued healthy gross domestic product (GDP) growth in the latter part of 2021 and into 2022. Inflation is increasing, but most forecasters view this as temporary.

By Yi Wen, Assistant Vice President and Economist, and Brian Reinbold, Research Associate

The On the Economy blog will periodically rerun blog posts that were of particular interest. The following post from March 2020 examines the relationship between trade and U.S. gross domestic product during the nation’s history.

In a recent Economic Synopses essay and Regional Economist article, we examined the link between industrialization and historical U.S. trade flows. In this post, we revisit this topic by focusing on historical imports, exports and total goods trade as percentages of gross domestic product (GDP) to provide a different perspective. Again, we find that trade has played an integral role in U.S. development.

By Charles S. Gascon, Regional Economist

Recent research by economist Stephan Whitaker at the Cleveland Fed found little evidence of an “urban exodus” during the pandemic. Populations of urban neighborhoods declined across the U.S. in 2020. However, this decline was primarily due to a drop in the flow of people moving into urban areas—not a mass urban exodus.

Whitaker found evidence of slower in-migration being the largest contributor to net outward urban migration, particularly in larger metropolitan areas. While these broad national trends are worthwhile to understand, dynamics of cities that have experienced out-migration for many decades, like St. Louis, can be very different than those of large coastal cities, like New York or San Francisco.

By Yi Wen, Assistant Vice President and Economist, and Brian Reinbold, Research Associate

The On the Economy blog will periodically rerun blog posts that were of particular interest. The following post from March 2020 examines the relationship between trade and U.S. gross domestic product during the nation’s history.

In a recent Economic Synopses essay and Regional Economist article, we examined the link between industrialization and historical U.S. trade flows. In this post, we revisit this topic by focusing on historical imports, exports and total goods trade as percentages of gross domestic product (GDP) to provide a different perspective. Again, we find that trade has played an integral role in U.S. development.

Bank branch closures in recent years have sparked concerns about limited access to banking services for certain populations, according to a Regional Economist article. But closures have been concentrated in areas with more than one branch, meaning increases to median distances to the nearest branches aren’t large, St. Louis Fed Economist Drew Dahl, Policy Analyst Michelle Franke and Vice President James Fuchs wrote.

When branch banks shutter, people sometimes must travel farther to conduct their banking business. In some cases, customers must drive significant distances or forgo financial transactions. At times, businesses have to close during the workday to make deposits or withdraw cash from distant branches. Hardships are particularly significant for the elderly, those lacking easy transportation and people with mobility issues. But those kinds of inconveniences from branch closings are not necessarily widespread, Dahl, Franke and Fuchs wrote.

“Our...

By Yi Wen, Assistant Vice President and Economist, and Brian Reinbold, Research Associate

The On the Economy blog will periodically rerun blog posts that were of particular interest. The following post from March 2020 examines the relationship between trade and U.S. gross domestic product during the nation’s history.

In a recent Economic Synopses essay and Regional Economist article, we examined the link between industrialization and historical U.S. trade flows. In this post, we revisit this topic by focusing on historical imports, exports and total goods trade as percentages of gross domestic product (GDP) to provide a different perspective. Again, we find that trade has played an integral role in U.S. development.

By Charles S. Gascon, Regional Economist

Recent research by economist Stephan Whitaker at the Cleveland Fed found little evidence of an “urban exodus” during the pandemic. Populations of urban neighborhoods declined across the U.S. in 2020. However, this decline was primarily due to a drop in the flow of people moving into urban areas—not a mass urban exodus.

Whitaker found evidence of slower in-migration being the largest contributor to net outward urban migration, particularly in larger metropolitan areas. While these broad national trends are worthwhile to understand, dynamics of cities that have experienced out-migration for many decades, like St. Louis, can be very different than those of large coastal cities, like New York or San Francisco.

“How Daniel Got What He Wanted” is the fifth video in the Explore Economics animated series. It will help students understand that people have to save to get the things they want. Daniel wants a new bike helmet and must earn income and save to reach his goal.