economy, the introduction of sticky prices can reduce the optimal volatility of taxes. …

of high volatility compared to periods of low volatility, using a regime-switching vector autoregression. The lower … that is weaker in high volatility periods. To rationalize our robust empirical results, we use a macroeconomic model in … volatility of aggregate shocks. In low volatility periods, banks lever up, which makes their balance sheets more sensitive to …

average higher volatility of output growth (1) accumulated higher external assets in the long-run and (2) experienced more …

This paper documents an increase in the volatility of output at the firm level in the United Kingdom, in keeping with … increased product market competition. This greater volatility at the firm level has also occurred at a time of greater … that the fall in aggregate volatility is mostly a result of lower covariance between sectors rather than individual sectors …