Do firms have the right incentives to innovate in the presence of productivity spillovers? This paper proposes an … imitate by hiring a worker from a firm that has already innovated. We show that if innovation firms can commit to long …-term wage contracts with their workers, productivity spillovers are fully internalized. If firms cannot commit to long-term wage …

implications of 122 recessions, 112 (28) credit contraction (crunch) episodes, 114 (28) episodes of house price declines (busts … the severity and duration of recessions. Specifically, we find evidence that recessions associated with credit crunches … and house price busts tend to be deeper and longer than other recessions. …

linkages between different phases of business and financial cycles. In particular, recessions associated with financial … disruption episodes, notably house price busts, tend to be longer and deeper than other recessions. Conversely, recoveries …

which are typically followed by deeper recessions and slower recoveries. Housing finance has come to play a central role in …

a succession of three distinct phases: expansions, recessions and recoveries. We discuss alternative methods to identify …

This Paper proposes a model of business cycles in which recessions and booms arise as the result of difficulties … such a model can explain the observed pattern of US recessions (frequency, depth) without relying on technological regress …