Gomme, Paul; Greenwood, Jeremy - Federal Reserve Bank of Minneapolis - 1992
A real business cycle model with heterogeneous agents is parameterized, calibrated, and simulated to see if it can … account for some stylized facts characterizing postwar U.S. business cycle fluctuations, such as the countercyclical movement … insurance from entrepreneurs, through optimal labor contracts, against losses in income due to business cycle fluctuations. The …