Gillman, Max; Kejak, Michal; Pakos, Michal - Department of Economics, University of Missouri-St. Louis - 2014
Rietz (1988) and Barro (2006) subject consumption and dividends to rare disasters in the growth rate. We extend their framework and subject consumption and dividends to rare disasters in the growth persistence. We model growth persistence by means of two hidden types of economic slowdowns:...
