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The cyclical price of labor when wages are smoothed

Kudlyak, Marianna - Federal Reserve Bank of Richmond - 2010

the time of hiring and the impact of labor market conditions at the time of hiring on future wages. The price of labor and … based on the behavior of individual wages and turnover. I find that a one percentage point increase in unemployment … individual wages and also noticeably higher than the cyclicality of the wages of newly hired workers. I conclude that the price …

Persistent link: https://www.econbiz.de/10008764357

Transition dynamics in the neoclassical growth model : the case of South Korea

Chang, Yongsung; Hornstein, Andreas - Federal Reserve Bank of Richmond - 2011

Many cases of successful economic development, such as South Korea, exhibit long periods of sustained capital accumulation rates. This empirical feature is at odds with the standard neoclassical growth model which predicts initially high and then declining capital accumulation rates. We show...

Persistent link: https://www.econbiz.de/10009321094

Fiscal rules and the sovereign default premium

Hatchondo, Juan Carlos; Martinez, Leonardo; Roch, Francisco - Federal Reserve Bank of Richmond - 2012

We find the optimal target values for fiscal rules and measure their aggregate effects using a model of sovereign default. We calibrate the model to an economy that pays a significant sovereign default premium when the government is not constrained by fiscal rules. For different levels of the...

Persistent link: https://www.econbiz.de/10010551313

Sorting by skill over the course of job search

Kudlyak, Marianna; Lkhagvasuren, Damba; Sysuyev, Roman - Federal Reserve Bank of Richmond - 2012

We use novel high-frequency panel data on individuals' job applications from an online job posting engine to study (1) whether at the beginning of search job seekers with different levels of education (skill) apply to different jobs, and (2) how search behavior changes as search continues....

Persistent link: https://www.econbiz.de/10010723108

Accounting for unemployment in the Great Recession : nonparticipation matters

Kudlyak, Marianna; Schwartzman, Felipe - Federal Reserve Bank of Richmond - 2012

We conduct an accounting exercise of the role of worker flows between unemployment, employment, and labor force nonparticipation in the dynamics of the aggregate unemployment rate across four recent recessions: 1982-1983, 1990-1991, 2001, and 2007-2009 (the "Great Recession"). We show that,...

Persistent link: https://www.econbiz.de/10010723109

Sales, inventories, and real interest rates : a century of stylized facts

Benati, Luca; Lubik, Thomas A. - Federal Reserve Bank of Richmond - 2012

We use Bayesian time-varying parameters structural VARs with stochastic volatility to investigate changes in both the reduced-form and the structural correlations between business inventories and either sales growth or the real interest rate in the United States during both the interwar and the...

Persistent link: https://www.econbiz.de/10010723110

What Inventory Behavior Tells Us About How Business Cycles Have Changed

Lubik, Thomas A.; Sarte, Pierre-Daniel G.; Schwartzman, … - Federal Reserve Bank of Richmond - 2014

Beginning in the mid-1980s, the nature of U.S. business cycles changed in important ways, as made evident by distinctive shifts in the comovement and relative volatilities of key economic aggregates. These include labor productivity, hours, output, and inventories. Unlike the widely documented...

Persistent link: https://www.econbiz.de/10010758361

The cyclicality of the user cost of labor with search and matching

Kudlyak, Marianna - Federal Reserve Bank of Richmond - 2011

hiring on future wages. In search and matching models, I show that it is the user cost and not the wage that is weighted … measure in the data and estimate that it is more procyclical than average wages or wages of newly hired workers. I show that …

Persistent link: https://www.econbiz.de/10008627170

Debt dilution and sovereign default risk

Hatchondo, Juan Carlos; Martinez, Leonardo - Federal Reserve Bank of Richmond - 2012

We measure the effects of debt dilution on sovereign default risk and show how these effects can be mitigated with debt contracts promising borrowing-contingent payments. First, we calibrate a baseline model à la Eaton and Gersovitz (1981) to match features of the data. In this model, bonds'...

Persistent link: https://www.econbiz.de/10008498240

Accounting for unemployment: the long and short of it

Hornstein, Andreas - Federal Reserve Bank of Richmond - 2012

Shimer (2012) accounts for the volatility of unemployment based on a model of homogeneous unemployment. Using data on short-term unemployment he finds that most of unemployment volatility is accounted for by variations in the exit rate from unemployment. The assumption of homogeneous exit rates...

Persistent link: https://www.econbiz.de/10010593679