Showing 1 - 10 of 59
Persistent link: https://www.econbiz.de/10004970318
This paper studies the provision of incentives to reallocate capital when managers are reluctant to relinquish control and have private information about the productivity of assets under their control. We show that when managers get private benefits from running projects substantial bonuses are...
Persistent link: https://www.econbiz.de/10004970357
This paper evaluates whether an estimated, structural, small open economy model of the Canadian economy can account for the substantial influence of foreign-sourced disturbances identified in numerous reduced-form studies. The analysis shows that the benchmark model --- and a number of variants...
Persistent link: https://www.econbiz.de/10004977913
This paper proposes a strategy to measure, in a unified setting, how the job finding probability and the job separation probability conditional on observable and unobservable individual characteristics varies over the business cycle. Recent papers by Shimer and Hall point out how new...
Persistent link: https://www.econbiz.de/10005069220
search with observed U.S. time series measures on employment, vacancies, and aggregate output to uncover the cyclical … employment changes, our procedure also implies measured time series of the flows into and out of employment. We find that labor … cyclical patterns lead to procyclical implied gross employment flows, thereby concentrating labor force reallocation during …
Persistent link: https://www.econbiz.de/10005069225
So far the literature on DSGE models with energy price shocks models energy on the production side only. In these models, energy shocks are responsible for only a negligible share of output fluctuations. We study the robustness of this finding. The aim of our paper is to model the response of...
Persistent link: https://www.econbiz.de/10005069247
Standard RBC models predict forecastable movements in output, consumption and hours that differ from those obtained from a VAR estimated on US data. The paper investigates whether introducing bounded rationality and learning generates business cycles properties which are empirically plausible....
Persistent link: https://www.econbiz.de/10005069254
Recessions appear to be times when markets function less efficiently. This phenomenon has been the domain of theories that rely on changes in preferences (demand shocks) or constraints on price-setting (sticky prices). In our simple model of decentralized trade with asymmetric information,...
Persistent link: https://www.econbiz.de/10005069276
The role of credit market imperfections as source of amplification and persistence of temporary exogenous shocks to the economy is widely accepted in the literature. Little attention has been paid to the possibility that credit frictions also generate instability. This paper proposes a theory of...
Persistent link: https://www.econbiz.de/10005069282
short and long run. In particular, I find that, in response to a positive ICT technology shock, employment, total factor … positive affect of the shock on Total Factor Productivity in the sector. Employment increases and capital increases appear to …
Persistent link: https://www.econbiz.de/10005069354