Jordà, Òscar; Schularick, Moritz; Taylor, Alan M. - 2022
Business cycles are costlier and stabilization policies could be more beneficial than widely thought. This paper … introduces a new test to show that all business cycles are asymmetric and resemble “mini-disasters.” By this we mean that growth … smaller but more frequent mini-disasters in every cycle. On average, and in post-WW2 data, even with low risk aversion …