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working schedules. This simple model can generate unemployment, even if wages adjust instantaneously, firms are perfectly … alternative explanation for why unskilled workers are a primary source of structural unemployment"--Federal Reserve Bank of St …
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"This paper studies strategic asset allocation and consumption choice in the presence of regime switching in asset returns. We find evidence that four separate regimes - characterized as crash, slow growth, bull and recovery states - are required to capture the joint distribution of stock and...
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"In the presence of infrequent but observable structural breaks, we show that a model in which the representative agent is on a rational learning path concerning the real consumption growth process can generate high equity premia and low risk-free interest rates. In fact, when the model is...
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