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Benhabib, Jess; Farmer, Roger E.A. - In: Review of Economic Dynamics 3 (2000) 3, pp. 523-550

Recent literature on structural vector autoregressions has attempted to identify the effects on the economy of an increase in the stock of money. This work has led to a broad concensus. Initially, an increase in money leads to an increase in economic activity. Output and employment go up, the...

Persistent link: https://www.econbiz.de/10005069639

Sources of Business Fluctuations: Financial or Technology Shocks?

Kaihatsu, Sohei; Kurozumi, Takushi - In: Review of Economic Dynamics 17 (2014) 2, pp. 224-242

Despite the widespread belief that technology shocks are the main source of business fluctuations, recent empirical studies indicate that in the absence of financial frictions, a shock to the marginal efficiency of investment is the main source and is closely related to financial conditions for...

Persistent link: https://www.econbiz.de/10010744707

Production Chains

Levine, David - In: Review of Economic Dynamics 15 (2012) 3, pp. 271-282

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/10009652136

Monopoly Power, Increasing Returns to Variety, and Local Indeterminacy

Chang, Juin-jen; Huang, Chun-chieh; Hung, Hsiao-wen - In: Review of Economic Dynamics 14 (2011) 2, pp. 384-388

The required degree of increasing returns-to-scale to satisfy the Benhabib-Farmer condition for local indeterminacy is … increasing returns-to-scale in production for generating local indeterminacy. As the degree of monopoly power increases, the … required degree of increasing returns for local indeterminacy decreases monotonically. As a result, our numerical analysis …

Persistent link: https://www.econbiz.de/10008509233

Markets and Relationships in a Learning Economy

Araujo, Luis; Minetti, Raoul - In: Review of Economic Dynamics 13 (2010) 3, pp. 687-700

It is generally agreed that within long-term relationships agents learn the characteristics of their market partners better than through spot transactions. In contrast, little is known on how relationship-based and transaction-based markets compare when agents learn about the aggregate economy...

Persistent link: https://www.econbiz.de/10004998383

Demographic Transition and Industrial Revolution: A Macroeconomic Investigation

Bar, Michael; Leukhina, Oksana - In: Review of Economic Dynamics 13 (2010) 2, pp. 424-451

All industrialized countries have experienced a transition from high birth rates, land-based production and stagnant standards of living to low birth rates and sustained income growth. To develop a better understanding of these economic and demographic transformations and the link between them,...

Persistent link: https://www.econbiz.de/10005009775

Fluctuations in Convex Models of Endogenous Growth II: Business Cycle Properties

Jones, Larry E.; Manuelli, Rodolfo E.; Siu, Henry E. - In: Review of Economic Dynamics 8 (2005) 4, pp. 805-828

Using ideas from the endogenous growth literature, we present a model of the endogenous determination of productivity growth based on individual worker decisions about human capital investment. We calibrate a version of the model to match long run growth facts from the US and study the business...

Persistent link: https://www.econbiz.de/10005069619

Idiosyncratic Risk and Aggregate Employment Dynamics

Campbell, Jeffrey R.; Fisher, Jonas D. M. - In: Review of Economic Dynamics 7 (2004) 2, pp. 331-353

This paper studies how idiosyncratic productivity risk impacts aggregate employment dynamics when there is a trade-off between workers' productivity and costs of job creation and destruction. In our analysis, increasing idiosyncratic risk induces a producer to move workers out of structured jobs...

Persistent link: https://www.econbiz.de/10005069625

How Barriers to International Trade Affect TFP

Herrendorf, Berthold; Teixeira, Arilton - In: Review of Economic Dynamics 8 (2005) 4, pp. 866-876

We ask how barriers to international trade affect TFP when there are monopoly rights in the import--competing industries. Holmes and Schmitz (1995) show that without barriers to trade TFP in these industries is as large as possible. We study the general case of finite barriers to trade. We find...

Persistent link: https://www.econbiz.de/10005069691

Fluctuations in Convex Models of Endogenous Growth I: Growth Effects

Jones, Larry E.; Manuelli, Rodolfo E.; Siu, Henry E.; … - In: Review of Economic Dynamics 8 (2005) 4, pp. 780-804

Is there a trade-off between fluctuations and growth? The empirical evidence is mixed, with some studies finding a positive relationship, while others find a negative one. Our objectives are to understand how fundamental uncertainty affects the long run growth rate and to identify important...

Persistent link: https://www.econbiz.de/10005091018