Showing 1 - 10 of 12,449
We propose a theoretical framework to reconcile episodes of V-shaped and L-shaped recovery, encompassing the behaviour of the U.S. economy before and after the Great Recession. In a DSGE model with endogenous growth, negative demand shocks destroy productive capacity, moving GDP to a lower...
Persistent link: https://www.econbiz.de/10012533939
capital accumulation. Further, and across different theoretical approaches, residential investment is seen as a critical …). Second, aggregate investment is then split into its residential and nonresidential categories. Results confirm that … residential investment leads the cycle, whereas nonresidential investment lags it. Finally, this study argues that residential …
Persistent link: https://www.econbiz.de/10013448820
This paper studies the role of investment-specific shocks as an amplification mechanism of labor market fluctuations …. We first show evidence suggesting that after a fall in the relative price of new equipment, not only do investment and … output increase but firms also post more vacancies, hours worked increase and unemployment falls. Moreover, we study the …
Persistent link: https://www.econbiz.de/10013109615
to employment growth, but are also pronounced for investment. Moreover, the medium-term decline in firm employment growth …
Persistent link: https://www.econbiz.de/10014353733
We present evidence that weak household demand contributed to a reduction in firm and establishment entry in the Great Recession. Motivated by this evidence, we characterize aggregate growth dynamics in response to demand shocks in a broad class of endogenous growth models. We show that the...
Persistent link: https://www.econbiz.de/10012862525
median path of Tobin’s q ratio displays regular, periodic cycles of bubbles and crashes reflecting an agency problem between … ; efficient markets ; financial bubbles ; stock markets ; booms and crashes ; Tobin’s q ; business cycles ; economic rents …
Persistent link: https://www.econbiz.de/10009663233
Prior to 2020, the Great Recession was the most important macroeconomic shock to the United States economy in generations. Millions lost jobs and homes. At its peak, one in ten workers who wanted a job could not find one. On an annual basis, the economy contracted by more than it had since the...
Persistent link: https://www.econbiz.de/10013251540
Prior to 2020, the Great Recession was the most important macroeconomic shock to the United States economy in generations. Millions lost jobs and homes. At its peak, one in ten workers who wanted a job could not find one. On an annual basis, the economy contracted by more than it had since the...
Persistent link: https://www.econbiz.de/10012405441
This paper develops a DSGE model with investment and capital accumulation build along demand-driven explanations of the … consumption while firms decide about recruiting effort as well as investment. This setting closed with market clearing in good and … investment is driven by self-fulfilling expectations about the adjustment cost of capital. Consistently with the view of business …
Persistent link: https://www.econbiz.de/10011865573
The current study examines the relationship between GDP fluctuations and private investment by using macro panel …-FMOLS) estimation.The study finds a long-run co-integrating relationship between GDP fluctuations and private investment in the SSAC. GM … on private investment in SSAC as GDP volatility gives a negative signal to private investors. The study also suggests …
Persistent link: https://www.econbiz.de/10013063344