A recurrent theme in the literature on business cycle fluctuations is the importance of expectational shocks that change the beliefs of agents concerning the future level of aggregate activity, but that do not reflect real movements in the fundamentals. This paper employs the ASA-NBER Survey of...

Becker's (1962) seminal article on human capital drew attention to the two polar types of human capital, which he called general and specific. In this paper we consider an intermediate type of human capital which we call quasi-specific. In particular, we consider environments in which the value...