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SVAR models that include a single world price (such as the terms-of-trade) predict that world shocks explain a small fraction of movements in domestic output (typically less than 10 percent). This paper presents an empirical framework in which multiple commodity prices transmit world...
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We study optimal unemployment insurance (UI) over the business cycle using a heterogeneous agent job search model with aggregate risk and incomplete markets. We validate the model-implied micro and macro labor market elasticities to changes in UI generosity against existing estimates, and...
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This paper shows that using yields may not be informative of the relationship between farm size and productivity in the … context of small-scale farming. This occurs because, in addition to productivity, yields pick up size-dependent market … distortions and decreasing returns to scale. As a result, a positive relationship between farm productivity and land size may turn …
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