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This paper (i) estimates the local effects of government stimulus spending on labor market outcomes and (ii) shows how these effects can be obtained from a firm's optimal policy in the presence of costs to hiring workers. We analyze the American Recovery and Reinvestment Act of 2009 (Recovery...
Persistent link: https://www.econbiz.de/10010890136
In this paper, we study the effects of interregional spillovers from the government spending component of the American Recovery and Reinvestment Act of 2009 (the Recovery Act). Using cross-county Census Journey to Work commuting data, we cluster U.S. counties into local labor markets, each of...
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A number of studies have documented a reduction in aggregate macroeconomic volatility beginning in the early 1980s … significant heterogeneity in the timing and magnitude of the state-level volatility reductions. In fact, some states experience no … statistically-significant reduction in volatility. We then exploit this cross-sectional heterogeneity to evaluate three hypotheses …
Persistent link: https://www.econbiz.de/10005342964
This paper investigates the welfare cost of business cycles in an economy where households have heterogeneous trading technologies. In an economy with aggregate risk, the different portfolio choices induced by heterogeneous trading technologies lead to a larger consumption inequality in...
Persistent link: https://www.econbiz.de/10010798471
Mortgage loans are a striking example of a persistent nominal rigidity. As a result, under incomplete markets, monetary policy affects decisions through the cost of new mortgage borrowing and the value of payments on outstanding debt. Observed debt levels and payment to income ratios suggest the...
Persistent link: https://www.econbiz.de/10011027315