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Lewis, Vivien - 2008

Business cycle models with sticky prices and endegenous firm entry make novel predictions on the transmission of shocks through the extensive margin of investment. This paper tests some of these predictions using a vector autoregression with model-based sign restrictions. We find a positive and...

Persistent link: https://www.econbiz.de/10010295880

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

Bachmann, Ruediger; Bayer, Christian - 2009

Using a unique 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...

Persistent link: https://www.econbiz.de/10010298833

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 heterogeneousfirm RBC model with persistent firm-level productivity shocks and lumpy capital adjustment, where cyclical changes in uncertainty...

Persistent link: https://www.econbiz.de/10010298831

On-the-job search and the cyclical dynamics of the labor market

Krause, Michael; Lubik, Thomas A. - 2007

We show how on-the-job search and the propagation of shocks to the economy are intricately linked. Rising search by employed workers in a boom amplifies the incentives of firms to post vacancies. In turn, more vacancies induce more on-the-job search. By keeping job creation costs low for firms,...

Persistent link: https://www.econbiz.de/10010295852

The debt brake: business cycle and welfare consequences of Germany's new fiscal policy rule

Mayer, Eric; Stähler, Nikolai - 2009

In a New Keynesian DSGE model with non-Ricardian consumers, we show that automatic stabilization according to a countercyclical spending rule following the idea of the debt brake is well suited both to steer the economy and in terms of welfare. In particular, the adjustment account set up to...

Persistent link: https://www.econbiz.de/10010298840

Long-Run Links Among Money, Prices, and Output: World-Wide Evidence

Reimers, Hans-Eggert; Herwartz, Helmut - 2001

Regarding inflation as being a monetary phenomenon in the long-run is a widely-held view in modern macro economics. We … analyse this topic by means of a P-star model. Based on the quantity theory of money, this approach explains inflation via a …Die Aussage, dass Inflation langfristig ein monetäres Phänomen ist, ist eine grundlegende Erkenntnis der Makroökonomie …

Persistent link: https://www.econbiz.de/10010295711

The reliability of Canadian output gap estimates

Cayen, Jean-Philippe; van Norden, Simon - 2004

Recent work on policy rules under uncertainty have highlighted the impact of output gap measurement errors on economic outcomes and their importance in the formulation of appropriate policy rules. This paper investigates the reliability of current estimates of the output gap in Canada. We begin...

Persistent link: https://www.econbiz.de/10010295656

Consumption, wealth and business cycles: why is Germany different?

Hamburg, Britta; Hoffmann, Mathias; Keller, Joachim - 2005

This paper studies the long-run relationship between consumption, asset wealth and income - the consumption-wealth ratio - in Germany, based on data from 1980 to 2003. Earlier papers for the Anglo-Saxon economies have documented that departures of these three variables from their common trend...

Persistent link: https://www.econbiz.de/10010295684

The cross-sectional dynamics of German business cycles: a bird's eye view

Döpke, Jörg; Funke, Michael; Holly, Sean; Weber, Sebastian - 2005

We establish some stylised facts for Germany's business cycle at the level of the firm. Based on longitudinal firm-level data from the Bundesbank's balance sheet statistic covering, on average, 55,000 firms per year from 1971 to 1998, we analyse the reallocation across individual producers and,...

Persistent link: https://www.econbiz.de/10010295768

Identifying the role of labor markets for monetary policy in an estimated DSGE model

Christoffel, Kai Philipp; Küster, Keith; Linzert, Tobias - 2006

wages and labor market shocks feed into the inflation process and derive monetary policy implications. Towards that aim, we …

Persistent link: https://www.econbiz.de/10010295805