We propose a model of business cycles for an economy that is characterized by involuntary unemployment and being dependent on energy imports. The presence of both factors increases aggregate volatility in a well-defined way: even in the absence of increasing returns to scale or high labor supply...

This paper quantitatively investigates the Depression of the 1890s and the 1907 recession in the United States. Business Cycle Accounting decomposes economic fluctuations into their contributing factors. The results suggest that both the 1890s and the 1907 recessions were primarily caused by...

This paper examines a market interlacing industry configuration in general equilibrium with multi-product firms. In contrast to previous studies which utilize market segmentation, firms produce multiple products even in the complete absence of the love of variety. Product scopes are procyclical...