Showing 1 - 10 of 43
More advanced technologies demand higher degrees of specialization - and longer chains of production connecting raw inputs to final outputs. Longer production chains are subject to a "weakest link" effect: they are more fragile and more prone to failure. Optimal chain length is determined by the...
Persistent link: https://www.econbiz.de/10013135410
-Saxon countries (the US and the UK), two Continental European countries (France and Germany) and two Scandinavian countries (Norway … probabilities observed in US, with mixed success in Europe. In contrast, matching shocks and job destruction shocks play a larger … role in most European countries relative to the US …
Persistent link: https://www.econbiz.de/10013114011
This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of capital may be unbounded above. I argue that this property is an important feature of any rational-agent explanation of a financial crisis, since for the expansion phase of the...
Persistent link: https://www.econbiz.de/10013123693
We consider trade between a flexible wage America and a rigid real wage Europe. In a benchmark case, a move from autarky to free trade doubles the European unemployment rate, while it raises the American unskilled wage to the high European level. Entry of the unskilled South to world markets...
Persistent link: https://www.econbiz.de/10013125263
This paper uses a sample of 116 recession episodes in developed and emerging market economies to compare the labor-market recovery during financial crises with that of other recession episodes. It documents two new stylized facts. First, labor-market recovery from financial crises is...
Persistent link: https://www.econbiz.de/10013099123
Macroprudential stress tests have been employed by regulators in the United States and Europe to assess and address the solvency condition of financial firms in adverse macroeconomic scenarios. We provide a test of these stress tests by comparing their risk assessments and outcomes to those from...
Persistent link: https://www.econbiz.de/10013083085
We simulate corporate tax reform in a single good, five-region (U.S., Europe, Japan, China, India) model, featuring … skilled and unskilled labor, detailed region-specific demographics and fiscal policies. Eliminating the model's U.S. corporate … income tax produces rapid and dramatic increases in the model's level of U.S. investment, output, and real wages, making the …
Persistent link: https://www.econbiz.de/10013071508
international patent applications in the US, Japan, the European Patent Office, and corresponding filings in three developing …
Persistent link: https://www.econbiz.de/10012964387
Recent dramatic declines in U.S. stock and housing markets have led to widespread speculation that shrinking retirement …
Persistent link: https://www.econbiz.de/10013150735
We analyze firm-level analyst forecasts during the COVID crisis. First, we describe expectations dynamics about future corporate earnings. Downward revisions have been sharp, mostly focused on 2020, 2021 and 2022, but much less drastic than the lower bound estimated by Gormsen and Koijen (2020)....
Persistent link: https://www.econbiz.de/10012833752