uncertainty. The results dictate the role of uncertainty and volatility in structural models and we show they are consistent with …

This paper investigates the sources of the widely noticed reduction in the volatility of American business cycles since … the mid 1980s. Our analysis of reduced volatility emphasizes the sharp decline in the standard deviation of changes in … reduced variance of shocks was the dominant source of reduced business-cycle volatility. Supply shocks accounted for 80 …

volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and …, thus mitigating volatility. But when firms face tight credit constraints, long-term investment turns procyclical, thus … amplifying volatility. Tighter credit therefore leads to both higher aggregate volatility and lower mean growth for a given total …

This paper analyzes the effects of business cycle volatility on measures of subjective well-being, including self … perceived well-being. Greater macroeconomic volatility also undermines well-being. These effects are moderate but important …: eliminating unemployment volatility would raise well-being by an amount roughly equal to that from lowering the average level of …

volatility of economic fluctuations. In a sample of 92 countries as well as a sample of OECD countries, we find that countries … with higher volatility have lower growth. The addition of standard control variables strengthens the negative relationship …. We also find that government spending-induced volatility is negatively associated with growth even after controlling for …

Does macroeconomic volatility/uncertainty affects accumulation of net foreign assets? In OECD economies over the period … 1970-2012, changes in country specific aggregate volatility are, after controlling for a wide array of factors …, significantly positively associated with net foreign asset position. An increase in volatility (measured as the standard deviation …

into different components. We find that the firm-specific component contributes substantially to aggregate sales volatility …

We propose a novel method to estimate dynamic equilibrium models with stochastic volatility. First, we characterize the … exploits the profusion of shocks in stochastic volatility models, is versatile and computationally tractable even in large … methods to estimate a business cycle model of the U.S. economy with both stochastic volatility and parameter drifting in …