Similar Search Results

Ilut, Cosmin - 2012

using first-order approximations. In our estimated medium-scale DSGE model, a loss of confidence about productivity works …

Persistent link: https://www.econbiz.de/10012460758

Are Cyclical Fluctuations in Productivity Due More to Supply Shocks or Demand Shocks?

Shapiro, Matthew D. - 1987

Measured productivity is strongly procyclical. Real business cycle theories suggest that actual fluctuations in … productivity are the source of fluctuations in aggregate output. Keynesian theories maintain that fluctuations in aggregate output … to explain the procyclicality of productivity. If observed productivity shocks are true productivity shocks, a function …

Persistent link: https://www.econbiz.de/10012476922

Identifying Ambiguity Shocks in Business Cycle Models Using Survey Data

Bhandari, Anmol - 2016

We develop a framework to analyze economies with agents facing time-varying concerns for model misspecification. These concerns lead agents to interpret economic outcomes and make decisions through the lens of a pessimistically biased 'worst-case' model. We combine survey data and implied...

Persistent link: https://www.econbiz.de/10012456450

Paradox of Thrift Recessions

Huo, Zhen - 2013

expenditures increase measured productivity. These departures provide a novel quantitative theory to explain recessions like those …

Persistent link: https://www.econbiz.de/10012459219

Factor Hoarding and the Propagation of Business Cycles Shocks

Burnside, Craig - 1994

This paper analyzes the role of variable capital utilization rates in propagating shocks over the business cycle. To this end we formulate and estimate an equilibrium business cycle model in which cyclical capital utilization rates are viewed as a form of factor hoarding. We find that variable...

Persistent link: https://www.econbiz.de/10012474257

Optimal Fiscal Policy in a Business Cycle Model

Chari, V. V. - 1993

This paper develops the quantitative implications of optimal fiscal policy in a business cycle model. In a stationary equilibrium the ex ante tax rate on capital income is approximately zero. There is an equivalence class of ex post capital income tax rates and bond policies that support a given...

Persistent link: https://www.econbiz.de/10012474455

Sources of Business Cycle Fluctuations

Shapiro, Matthew D. - 1988

What shocks account for the business cycle frequency and long run movements of output and prices? This paper addresses this question using the identifying assumption that only supply shocks, such as shocks to technology, oil prices, and labor supply affect output in the long run. Real and...

Persistent link: https://www.econbiz.de/10012476480

Labor Supply and Aggregate Fluctuations

Hall, Robert E. - 1979

Issues of labor supply are at the heart of macroeconomic explanations of the large cyclical fluctuations of output observed in modern economies. This paper starts with a serious empirical examination of the view that the labor market is always in balance-that every observed combination of...

Persistent link: https://www.econbiz.de/10012478763

Risk Premium Shocks Can Create Inefficient Recessions

Tella, Sebastian Di - 2020

We develop an equilibrium theory of business cycles driven by spikes in risk premiums that depress business demand for capital and labor. Aggregate shocks increase firms' uninsurable idiosyncratic risk and raise risk premiums. We show that risk shocks can create quantitatively realistic...

Persistent link: https://www.econbiz.de/10012479245

Uncertainty Shocks and Business Cycle Research

Fernández-Villaverde, Jesús - 2020

We review the literature on uncertainty shocks and business cycle research. First, we motivate the study of uncertainty shocks by documenting the presence of time-variation in the volatility of macroeconomic time series. Second, we enumerate the mechanisms that researchers have postulated to...

Persistent link: https://www.econbiz.de/10012479292