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Micro and Macro Elasticities in a Life Cycle Model With Taxes

Rogerson, Richard - 2007

We build a life cycle model of labor supply that incorporates changes along both the intensive and extensive margin and use it to assess the consequences of changes in tax and transfer policies on equilibrium hours of work. We find that changes in taxes have large aggregate effects on hours of...

Persistent link: https://www.econbiz.de/10012465638

Cap and Trade Policies in the Presence of Monopoly and Distortionary Taxation

Fullerton, Don - 2002

We extend an analytical general equilibrium model of environmental policy with pre-existing labor tax distortions to include pre-existing monopoly power as well. We show that the existence of monopoly power has two offsetting effects on welfare. First, the environmental policy reduces monopoly...

Persistent link: https://www.econbiz.de/10012469813

Inflation as a Redistribution Shock : Effects on Aggregates and Welfare

Doepke, Matthias - 2006

model an inflation episode as an unanticipated shock to the wealth distribution in a quantitative overlapping …-generations model of the U.S. economy. While the redistribution shock is zero sum, households react asymmetrically, mostly because …

Persistent link: https://www.econbiz.de/10012466346

Wages and the Allocation of Hours and Effort

Bils, Mark - 1999

We examine the impact of wage stickiness when employment has an effort as well as hours dimension. Despite wages being predetermined, the labor market clears through the effort margin. We compare this model quantitatively to models with flexible and sticky wages, but no effort margin. Allowing...

Persistent link: https://www.econbiz.de/10012471475

Supply Shocks, Wage Stickiness, and Accommodation

Fischer, Stanley - 1983

The main issue discussed in the supply shock literature that followed the oil and food price shocks of the seventies … was whether to accommodate. The supply shock reduces the equilibrium level of output, and monetary policy can not affect … should be used to prevent such recessions. The paper analyzes the conditions underwhich a suppiy shock will result in …

Persistent link: https://www.econbiz.de/10012477983

How Much Consumption Insurance in Bewley Models with Endogenous Family Labor Supply?

Wu, Chunzan - 2018

We show that a calibrated life-cycle two-earner household model with endogenous labor supply can rationalize the extent of consumption insurance against shocks to male and female wages, as estimated empirically by Blundell, Pistaferri and Saporta-Eksten (2016) in U.S. data. With additively...

Persistent link: https://www.econbiz.de/10012453242

Pricing Assets in an Economy with Two Types of People

Farmer, Roger E.A. - 2016

This paper constructs a general equilibrium model with two types of people where asset price fluctuations are caused by random shocks to the price level that reallocate consumption across generations. In this model, asset prices are volatile, and price-earnings ratios are persistent, even though...

Persistent link: https://www.econbiz.de/10012456447

Price Setting with menu cost for Multi-product firms

Alvarez, Fernando E. - 2012

impulse response of aggregate prices and output to a monetary shock. The size of the output response and its duration increase …

Persistent link: https://www.econbiz.de/10012460733

Idiosyncratic Shocks and the Role of Nonconvexities in Plant and Aggregate Investment Dynamics

Khan, Aubhik - 2007

We study a model of lumpy investment wherein establishments face persistent shocks to common and plant-specific productivity, and nonconvex adjustment costs lead them to pursue generalized (S,s) investment rules. We allow persistent heterogeneity in both capital and total factor productivity...

Persistent link: https://www.econbiz.de/10012465811

Spatial Linkages, Global Shocks, and Local Labor Markets : Theory and Evidence

Adão, Rodrigo - 2019

flexible structure of spatial linkages, we characterize the model-consistent shock exposure of a local market as the exogenous … directly to the market's own shock exposure, and indirectly to other markets shocks exposures. We show how spatial linkages …-in-difference designs based on model-consistent measures of local shock exposure approximate well the differential effect of international …

Persistent link: https://www.econbiz.de/10012479498