Showing 1 - 10 of 471
We examine the hypothesis that the slowdown in productivity following the Great Recession was in significant part an endogenous response to the contraction in demand that induced the downturn. We first present some panel data evidence that technology diffusion is highly cyclical. We then develop...
Persistent link: https://www.econbiz.de/10012456668
If firms purchase capital up to the point where there is no further marginal benefit, and the firms' securities are equal in value to the capital, then the market value of securities measures the quantity of capital. I explore the implications of this hypothesis using data from U.S. non-farm,...
Persistent link: https://www.econbiz.de/10012471608
Is there a trade-off between fluctuations and growth? The empirical evidence is mixed, with some studies (Kormendi and Meguire (1985)) finding a positive relationship, while others (Ramey and Ramey (1995)) finding the a negative one. Our objective in this paper is to understand how fundamental...
Persistent link: https://www.econbiz.de/10012471733
In his famous monograph, Lucas (1987) put forth an argument that the welfare gains from reducing the volatility of aggregate consumption are negligible. Subsequent work that revisited Lucas' calculation continued to find only small benefits from reducing the volatility of consumption, further...
Persistent link: https://www.econbiz.de/10012468727
A major unresolved issue in business cycle theory is the construction of an endogenous propagation mechanism capable of capturing the amount of persistence displayed in the data. In this paper we explore the quantitative implications of one propagation mechanism: learning by doing. Estimation of...
Persistent link: https://www.econbiz.de/10012471913
cutting. While traditional Schumpeterian analyses have focused on the relationships between market structure and innovation …, they have paid less attention to the relationship between innovation and capital market imperfections (resulting, in many … cases, from problems of costly and imperfect information which are particularly important in the context of innovation). It …
Persistent link: https://www.econbiz.de/10012474674
Our purpose in this paper is to present a class of convex endogenous growth models, and to analyze their performance in terms of both growth and business cycle criteria. The models we study have close analogs in the real business cycle literature. In fact, we interpret the exogenous growth rate...
Persistent link: https://www.econbiz.de/10012471134
We construct a rational expectations model in which aggregate growth alternates between a low growth and a high growth state. When all agents expect growth to be slow, the returns on investment are low, and little investment takes place. This slows growth and confirms the prediction that the...
Persistent link: https://www.econbiz.de/10012473183
examines how fluctuations in per capita GNP are affected by these features of the innovation process. Micro data from the U …
Persistent link: https://www.econbiz.de/10012474491
We develop a model in which innovations in an economy's growth potential are an important driving force of the business cycle. The framework shares the emphasis of the recent "new shock" literature on revisions of beliefs about the future as a source of fluctuations, but differs by tieing these...
Persistent link: https://www.econbiz.de/10012463620