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Financing Constraints, Irreversibility, and Investment Dynamics

Caggese, Andrea - Barcelona Graduate School of Economics (Barcelona GSE) - 2001

cyclical behavior of aggregate fixed investment, variable capital investment, and output in the presence of persistent … fixed capital investment is reinforced by the financing constraint. Second, the effect of the financing constraint on … variable capital investment is reinforced by the irreversibility constraint. Finally, the interaction between the two …

Persistent link: https://www.econbiz.de/10010547393

The Network Origins of Aggregate Fluctuations

Acemoglu, Daron; Carvalho, Vasco; Ozdaglar, Asuman; … - Barcelona Graduate School of Economics (Barcelona GSE) - 2011

This paper argues that in the presence of intersectoral input-output linkages, microeconomic idiosyncratic shocks may lead to aggregate fluctuations. In particular, it shows that, as the economy becomes more disaggregated, the rate at which aggregate volatility decays is determined by the...

Persistent link: https://www.econbiz.de/10010851431

Skill-Biased Technological Change and the Business Cycle

Balleer, Almut; Rens, Thijs van - Barcelona Graduate School of Economics (Barcelona GSE) - 2011

-biased technology shocks have no effect on the relative price of investment, suggesting that capital and skill are not complementary in …

Persistent link: https://www.econbiz.de/10010547348

Wage Rigidity and Job Creation

Haefke, Christian; Sonntag, Marcus; Rens, Thijs van - Barcelona Graduate School of Economics (Barcelona GSE) - 2012

Recent research in macroeconomics emphasizes the role of wage rigidity in ac- counting for the volatility of unemployment fluctuations. We use worker-level data from the CPS to measure the sensitivity of wages of newly hired workers to changes in aggregate labor market conditions. The wage of...

Persistent link: https://www.econbiz.de/10010550421

Rule-of-Thumb Consumers and the Design of Interest Rate Rules

Galí, Jordi; Pérez-Salido, J. David - Barcelona Graduate School of Economics (Barcelona GSE) - 2003

We introduce rule-of-thumb consumers in an otherwise standard dynamic sticky price model, and show how their presence can change dramatically the properties of widely used interest rate rules. In particular, the existence of a unique equilibrium is no longer guaranteed by an interest rate rule...

Persistent link: https://www.econbiz.de/10010851326

Fiscal Foresight, Forecast Revisions and the Effects of Government Spending in the Open Economy

Gambetti, Luca - Barcelona Graduate School of Economics (Barcelona GSE) - 2012

This paper investigates the effects of government spending on the real exchange rate and the trade balance in the US using a new VAR identification procedure based on spending forecast revisions. I find that the real exchange rate appreciates and the trade balance deteriorates after a government...

Persistent link: https://www.econbiz.de/10010851329

Macroeconomic Shocks and the Business Cycle: Evidence from a Structural Factor Model fiscal

Forni, Mario; Gambetti, Luca - Barcelona Graduate School of Economics (Barcelona GSE) - 2010

We obtain the following results. (ii) Both supply and demand shocks are important sources of fluctuations; supply prevails for GDP, while demand prevails for employment and information. (ii) Policy matters: Both monetary and fiscal policy shocks have sizeable effects on output and prices, with...

Persistent link: https://www.econbiz.de/10010851335

Has the Euro-Mediterranean Partnership Affected Mediterranean Business Cycles?

Canova, Fabio; Schlaepfer, Alain - Barcelona Graduate School of Economics (Barcelona GSE) - 2012

We date turning points of the reference cycle for 19 countries in the Mediterranean, for selected regions, and for the area. Cycles phases are asymmetric, with expansions lasting, on average, much longer than recessions. Cyclical fluctuations are volatile and not highly correlated across...

Persistent link: https://www.econbiz.de/10010851371

Man-Bites-Dog Business Cycle

Nimark, Kristoffer - Barcelona Graduate School of Economics (Barcelona GSE) - 2013

The newsworthiness of an event is partly determined by how unusual it is and this paper investigates the business cycle implications of this fact. In particular, we analyze the consequences of information structures in which some types of signals are more likely to be observed after unusual...

Persistent link: https://www.econbiz.de/10010851373

Do Institutions and Culture Matter for Business Cycles?

Altug, Sumru; Canova, Fabio - Barcelona Graduate School of Economics (Barcelona GSE) - 2012

We examine the relationship between institutions, culture and cyclical fluctuations for a sample of 45 European, Middle Eastern and North African countries. Better governance is associated with shorter and less severe contractions and milder expansions. Certain cultural traits, such as lack of...

Persistent link: https://www.econbiz.de/10010851386