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Monetary Non-Neutrality in a Multi-Sector Menu Cost Model
Nakamura, Emi - 2009
Empirical evidence suggests that as much as 1/3 of the U.S. business cycle is due to nominal shocks. We calibrate a multi-sector menu cost model using new evidence on the cross-sectional distribution of the frequency and size of price changes in the U.S. economy. We augment the model to...
Persistent link: https://www.econbiz.de/10012766432
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Small and Large Price Changes and the Propagation of Monetary Shocks
Alvarez, Fernando - 2014
We document the presence of both small and large price changes in individual price records from the CPI in France and the US. After correcting for measurement error and cross-section heterogeneity, the size-distribution of price changes has a positive excess kurtosis. We propose an analytical...
Persistent link: https://www.econbiz.de/10013053475
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Productivity and Misallocation in General Equilibrium
Baqaee, David - 2017
This paper develops a general theory of aggregation in inefficient economies. We provide non-parametric formulas for …
Persistent link: https://www.econbiz.de/10012943616
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Allocative and Remitted Wages : New Facts and Challenges for Keynesian Models
Basu, Susanto - 2016
Modern monetary business-cycle models rely heavily on price and wage rigidity. While there is substantial evidence that prices do not adjust frequently, there is much less evidence on whether wage rigidity is an important feature of real world labor markets. While real average hourly earnings...
Persistent link: https://www.econbiz.de/10012991672
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Trading on Sunspots
Jovanovic, Boyan - 2015
In a model with multiple Pareto-ranked equilibria we add trade in assets that pay based on the realization of a sunspot. Asset trading restricts the equilibrium set in a way that raises welfare by eliminating equilibria with a high likelihood of disasters. When the probability of a disaster is...
Persistent link: https://www.econbiz.de/10013031016
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Factor Adjustment, Quality Change, and Productivity Growth for U.S. Manufacturing
Bernstein, Jeffrey I.; Mamuneas, Theofanis P.; … - 2021
This paper accounts for quality improvements and adjustment costs in all inputs to U.S. manufacturing production. Adjustment processes for non-capital inputs are slower than previously recognized. Annual adjustment percentages are: labor 77, capital 30, energy 20, and materials 21. Factor prices...
Persistent link: https://www.econbiz.de/10013232898
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Investors' and Central Bank's Uncertainty Embedded in Index Options
David, Alexander - 2011
Shocks to equity options' ATM implied volatility (ATMIV) are followed by persistently lower short-term rates. Shocks to the ratio of OTM puts' over OTM calls' implied volatilities (P/C) are followed by persistently higher rates. The stock's and Treasury-bond's ATMIV indices, which measure market...
Persistent link: https://www.econbiz.de/10013130555
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Business Cycle Fluctuations and the Life Cycle : How Important is On-the-Job Skill Accumulation?
Hansen, Gary D. - 2010
We study the effects of on-the-job skill accumulation on average hours worked by age and the volatility of hours over the life cycle in a calibrated general equilibrium model. Two forms of skill accumulation are considered: learning by doing and on-the-job training. In our economy with learning...
Persistent link: https://www.econbiz.de/10012759693
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Expectations, Learning and Business Cycle Fluctuations
Eusepi, Stefano - 2008
This paper develops a theory of expectations-driven business cycles based on learning. Agents have incomplete knowledge … technology shock that is 20 percent smaller, and has substantially more volatility in investment and hours. Persistence in these … series is captured, unlike in standard models. Inherited from real business cycle theory, the benchmark model suffers a …
Persistent link: https://www.econbiz.de/10012770876
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Learning by Doing and Aggregate Fluctuations
Cooper, Russell; Johri, Alok - 2021
A major unresolved issue in business cycle theory is the construction of an endogenous propagation mechanism capable of …
Persistent link: https://www.econbiz.de/10013229059