Consider an economy subject to two kinds of shocks: (a) an observable shock to the relative demand for final goods … output is determined by (1) the technological shock that determines which final goods industry uses his output intensively … among final goods, then it doesn't matter which final goods industry uses the worker's output. Thus the technological shock …

recovered but unemployment lingered). This paper presents a model that captures these three facts. The key elements of the model … confidence shock. Lack-of-confidence shocks play a central role in generating jobless recoveries, for fundamental shocks, such as …

between Canada and U.S. are essentially zero. Both findings are at odds with the data. A specification that assumes correlated …

We propose a novel identification scheme for a non-technology business cycle shock, that we label "sentiment." This is … a shock orthogonal to identified surprise and news TFP shocks that maximizes the short-run forecast error variance of an … of three identified shocks - surprise TFP, news of future TFP, and "sentiment" - from the US to Canada. The US sentiment …

. Government incentives to production may alleviate high unemployment in this economy, but at the cost of exacerbating sclerosis …

positive technology shock, and (c) measured productivity increases temporarily in response to a positive demand shock. More …

covering multiple large wars and depressions in the U.S. and Canada. Using an extension of Ramey's (2011) military news series … periods of high unemployment in the U.S. In every case, the estimated multipliers are below unity. We do find some evidence of … higher multipliers during periods of slack in Canada, with some multipliers above unity …

stock and flow data to understand key developments. We find dramatic changes in employment, unemployment and labor market …

States, Canada, Germany, and several other OECD countries during and after the Great Recession of 2008-09. Unemployment rates … increased moderately in Canada. More recent data also show that, unlike Germany and Canada, the U.S. unemployment rate remains …