Showing 1 - 10 of 47
This paper develops a complete-market production economy with heterogeneous beliefs about TFP growth. Hiring occurs before TFP is known and is, therefore, risky (operational leverage). The firm's discount factor depends on a wealth-weighted average of investors' beliefs. Waves of optimism...
Persistent link: https://www.econbiz.de/10015398124
up to their more resilient competitors via greater software investment. This is consistent with a complementarity between … first look at how WFH practices improved resilience to a major, unanticipated social and economic shock …
Persistent link: https://www.econbiz.de/10012496142
idiosyncratic shock process faced by firms. Using a large representative firm-level dataset, we document nonparametrically that the … common assumption, a Gaussian AR(1) shock process, is at odds in important ways with observed fat-tailed firm dynamics. We …
Persistent link: https://www.econbiz.de/10014322725
A central question in applied research is to estimate the effect of an exogenous intervention or shock on an outcome …
Persistent link: https://www.econbiz.de/10015056147
An impulse response is the dynamic average effect of an intervention across horizons. We use the well-known Kitagawa-Blinder-Oaxaca decomposition to explore a response's heterogeneity over time and over states of the economy. This can be implemented with a simple extension to the usual local...
Persistent link: https://www.econbiz.de/10014226168
The Global Financial Crisis and the COVID-19 pandemic were two major shocks to the world economy in the 21st century. In this study, we analyze the patterns of recessions and recoveries of 101 advanced and developing economies. We identify the turning points of recessions and expansions between...
Persistent link: https://www.econbiz.de/10015409788
This essay discusses the reasons for and implications of the decline in real interest rates around the world over the past several decades. It suggests that the decline in interest rates is largely explicable from trends in saving, growth, and markups. In this environment, greater government...
Persistent link: https://www.econbiz.de/10013210052
We document a process of rapid tertiarization of the Chinese economy since 2005. The employment and value-added shares of the service sector have increased significantly. Moreover, total factor productivity growth has increased faster in the service sector than in the manufacturing sector....
Persistent link: https://www.econbiz.de/10013334489
Compared to a half-century ago, inequality in the United states has risen and measured productivity growth has fallen. Concerns about rising inequality have been exacerbated by the observation that prices of goods consumed by the poor have risen faster than prices of goods consumed by the rich....
Persistent link: https://www.econbiz.de/10014248014
Growth theory is based on the assumption of exponential total factor productivity (TFP) growth. Across countries and …
Persistent link: https://www.econbiz.de/10013191045