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Idiosyncratic shocks and the role of nonconvexities in plant and aggregate investment dynamics

Khan, Aubhik; Thomas, Julia - Federal Reserve Bank of Minneapolis - 2004

shocks makes the average distribution of plant investment rates largely invariant to market-clearing movements in real wages …

Persistent link: https://www.econbiz.de/10005367607

The firm and the plant in general equilibrium theory

Hornstein, Andreas; Prescott, Edward C. - Federal Reserve Bank of Minneapolis - 1989

The general equilibrium formulations are developed for two important economic environments. The first environment is the Lucas managerial span-of-control theory of the firm. It is shown that, in the spirit of McKenzie, the aggregate production set can be characterized by a convex cone. The...

Persistent link: https://www.econbiz.de/10005367696

Analyzing the Labor Market Outcomes of Occupational Licensing

Kleiner, Morris M.; Gittleman, Maury; Klee, Mark - Federal Reserve Bank of Minneapolis - 2014

offers more detailed information on occupational licensing from government, with a larger sample size and access to a richer …

Persistent link: https://www.econbiz.de/10010939372

Labor contracts in a model of imperfect competition

Chari, V.V.; Jones, Larry E.; Manuelli, Rodolfo E. - Federal Reserve Bank of Minneapolis - 1989

We propose a definition of involuntary unemployment which differs from that traditionally used in implicit labor contract theory. We say that a worker is involuntarily unemployed if the marginal wage implied by the optimal contract exceeds the marginal rate of substitution between leisure and...

Persistent link: https://www.econbiz.de/10005367683

The employment and wage effects of oil price shocks: a sectoral analysis

Keane, Michael P.; Prasad, Eswar S. - Federal Reserve Bank of Minneapolis - 1991

In this paper we use micro panel data to examine the effects of oil price shocks on employment and real wages, at the … the basis of skill level. We find that oil price increases result in a substantial decline in real wages for all workers … substantial changes in employment shares and relative wages across industries. However, we find little evidence that oil price …

Persistent link: https://www.econbiz.de/10005372794

A business cycle model with nominal wage contracts and government

Cho, Jang-Ok; Phaneuf, Louis - Federal Reserve Bank of Minneapolis - 1993

We incorporate nominal wage contracts and government into a quantitative general equilibrium framework. Thus, our model includes three types of shocks: a fiscal shock, a monetary shock, and a technology shock. We show that it is possible in this type of environment to generate a low correlation...

Persistent link: https://www.econbiz.de/10005372795

Nominal contracting theories of unemployment: evidence from panel data

Keane, Michael P. - Federal Reserve Bank of Minneapolis - 1990

This paper examines the response of real wages and employment probabilities to nominal shocks using micro-panel data … predict that nominal surprises should be negatively correlated with real wages in sectors with nominal contracting. In fact …, inflation surprises are found to be essentially uncorrelated with real wages in all sectors, while money growth surprises are …

Persistent link: https://www.econbiz.de/10005372796

Human capital, aggregate shocks, and panel data estimation

Altug, Sumru; Miller, Robert A. - Federal Reserve Bank of Minneapolis - 1990

This paper analyses how the wage and employment decisions of females are affected by past workforce participation and hours supplied. Our estimation methods exploit the fact that, when markets are complete, the Lagrange multiplier for an agent’s lifetime budget constraint always enters...

Persistent link: https://www.econbiz.de/10005372809

Individual heterogeneity and interindustry wage differentials

Keane, Michael P. - Federal Reserve Bank of Minneapolis - 1991

residual variance of log wages across industries is explained by individual fixed-effects. Only 16 percent of the residual … wages in efficiency wage paying (or primary) industries should be relatively rigid. Therefore, industry wage differentials …

Persistent link: https://www.econbiz.de/10005372817

Sectoral shift theories of unemployment: evidence from panel data

Keane, Michael P. - Federal Reserve Bank of Minneapolis - 1990

This paper examines the response of sectoral real wages and location probabilities to oil price shocks using U.S. micro … relative wages should increase unemployment in the short run and lead to labor reallocation in the long run. Consistent with … these predictions, the oil price changes of the 1970s resulted in substantial movements in industry relative wages and …

Persistent link: https://www.econbiz.de/10005372833