Similar Search Results

The cross-section of firms over the business cycle : new facts and a DSGE exploration

Bachmann, Ruediger; Bayer, Christian - 2009

Using a German firm-level data set, this paper is the first to jointly study the cyclical properties of the cross-sections of firm-level real value added and Solow residual innovations, as well as capital and employment adjustment. We find two new business cycle facts: 1) The cross-sectional...

Persistent link: https://www.econbiz.de/10010271782

Firm-specific productivity risk over the business cycle : facts and aggregate implications

Bachmann, Ruediger; Bayer, Christian - 2009

Is time-varying firm-level uncertainty a major cause or amplifier of the business cycle? This paper investigates this question in the context of a heterogeneous-firm RBC model with persistent firm-level productivity shocks and lumpy capital adjustment, where cyclical changes in uncertainty...

Persistent link: https://www.econbiz.de/10010266059

How strongly did the 2007/08 oil price hike contribute to the subsequent recession?

Carstensen, Kai; Elstner, Steffen; Paula, Georg - 2011

In this paper we challenge the view that the oil price has lost its influence on economic activity after the mid-1980s. While we concede that typical VAR models put forward in the literature fail to identify oil price shocks that significantly affect aggregate production, we obtain clearly...

Persistent link: https://www.econbiz.de/10010274918

Trade and Uncertainty

Novy, Dennis; Taylor, Alan M. - 2014

We offer a new explanation as to why international trade is so volatile in response to economic shocks. Our approach combines the uncertainty shock idea of Bloom (2009) with a model of international trade, extending the idea to the open economy. Firms import intermediate inputs from home or...

Persistent link: https://www.econbiz.de/10010398680

Unemployment and endogenous reallocation over the business cycle

Carrillo-Tudela, Carlos; Visschers, Ludo - 2013

We build an analytically and computationally tractable stochastic equilibrium model of unemployment in heterogeneous labor markets. Facing search frictions within markets and reallocation frictions between markets, workers endogenously separate from employment and endogenously reallocate between...

Persistent link: https://www.econbiz.de/10010291522

Inflation and output dynamics in a model with labor market search and capital accumulation

Heer, Burkhard; Maußner, Alfred - 2007

rate policy helps to reconcile the inflation and output persistence with empirical observations for the US economy. We show … findings for the inflation inertia in a model with capital adjustment costs and variable capacity utilization, the output …

Persistent link: https://www.econbiz.de/10010275797

Does the Euro-zone diverge? A stress indicator for analyzing trends and cycles in real GDP and inflation

Flaig, Gebhard; Wollmershäuser, Timo - 2007

This paper presents a stress indicator for the Euro-zone that summarizes developments of trends and cycles in real GDP … and inflation in the member countries. Stress in a country is defined as the difference between the country's actual short … that stress in the Euro-zone is mainly due to different trend growth rates and that for most of the Euro-zone countries …

Persistent link: https://www.econbiz.de/10010276206

What are the effects of tax changes in the United Kingdom? New evidence from a narrative evaluation

Cloyne, James - 2011

This paper estimates the effects of tax changes on the U.K. economy. Identification is achieved by isolating the 'exogenous' tax policy shocks in the post-war U.K. economy using a narrative strategy as in Romer and Romer (2010). The resulting tax changes are shown to be unforecastable on the...

Persistent link: https://www.econbiz.de/10010274733

Consumption risk sharing over the business cycle: the role of small firms' access to credit markets

Hoffmann, Mathias; Shcherbakova, Iryna - 2009

Consumption risk sharing among U.S. federal states increases in booms and decreases in recessions. We find that small firms' access to credit markets plays an important role in explaining this stylized fact: business cycle fluctuations in aggregate risk sharing are more pronounced in states in...

Persistent link: https://www.econbiz.de/10010264555

Investigating the U.S. oil-macroeconomy nexus using rolling impulse responses

Gronwald, Marc - 2009

This paper is concerned with the apparent change in the U.S. oil price-macroeconomy relationship. It is investigated to what extent this change can be accounted for by the large oil price surges witnessed in the 1970s. The innovative approach of rolling impulse responses is applied and both the...

Persistent link: https://www.econbiz.de/10010265987