This paper suggests that a model in which firms face credit constrains on hiring labor can explain both the behavior of the labor wedge and the “jobless recoveries” phenomenon of the last three recessions. Using the corporate credit spread as a measure of firms' credit conditions, I show...

This paper studies the cyclicality of aggregate real wages in Japan. By using both static and dynamic approaches, I measure comovements between real wages and business cycle indicators. This paper finds that while real wages constructed using the consumer price index and the GDP deflator are...

We provide empirical evidence on the Lucas Supply Function based on actual inflation surprises for 19 industrial economies. Our results show that the inflation surprise positively correlates with the output gap and that this relationship is negatively related to inflation variability.

This paper continues discussion on the issue of time series decomposition by presentation of the Empirical Mode Decomposition technique. This technique outperforms well-known time-series filters by providing a deeper insight into the structure of time series.

We measure the severity of recessions as a function of their amplitude and duration. Within a quantile regression framework, we assess what causes economic downturns to be more or less severe. We find that the most severe downturns have striking similarities regarding cumulated domestic credit...

We introduce endogenous growth in a standard NK model with staggered prices and wages. We find that the source of nominal rigidities, the shock persistence and the type of Taylor rule affect the relationship between monetary volatility and growth.

We study the consequences of a solidarity property that specifies how a value for cooperative games should respond if some player forfeits his productivity, i.e., becomes a null player. Nullified solidarity states that in this case either all players weakly gain together or all players weakly...

Adapting a methodology proposed in Das et al. (2011), this paper uses panel refreshments as a natural experiment to determine whether trends in stated utility measures observed in panel data are genuine or rather caused by measurement issues.

We add a gift in appreciation of the subject’s contribution to a social reference treatment successfully proven to trigger higher donations, and find that the share of people contributing decreases significantly, thereby eroding the original treatment’s capacity to increase donations.

Under a deadweight loss of tax and transfer, there is tension between the optimal policy choices of a Rawlsian social planner and a utilitarian social planner. However, when with a weight greater than a certain critical value the individuals’ utility functions incorporate distaste for low...