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Lumpy Investment, Fluctuations in Volatility, and Monetary Policy

Fang, Min - 2020

Is monetary policy less effective at stimulating investment during periods of elevated volatility (when all firms … elevated volatility leads to a decrease in extensive margin investment incentive so that nominal stimulus generates less … aggregate investment. To do this, I first document empirically that high volatility weakens firms' investment responses to …

Persistent link: https://www.econbiz.de/10012840814

Two Cycle Stochastic Growth Model : Underground Economy, Investment Volatility and Taxation

Busato, Francesco; Chiarini, Bruno - 2002

This paper develops a new theoretical framework, introducing into the traditional real business cycle model a second sector, which we interpret as representing the underground economy. We find that a model with an underground sector is quite successful in matching the stylized facts of the...

Persistent link: https://www.econbiz.de/10014124269

Volatility and Growth : Credit Constraints and Productivity-Enhancing Investment

Aghion, Philippe; Banerjee, Abhijit V.; Angeletos, … - 2015

We examine how credit constraints affect the cyclical behavior of productivity-enhancing investment and thereby … volatility and growth. We first develop a simple growth model where firms engage in two types of investment: a short-term one and … a long-term productivity-enhancing one. Because it takes longer to complete, long-term investment has a relatively less …

Persistent link: https://www.econbiz.de/10014028049

Why is old workers' labor market more volatile? : unemployment fluctuations over the life-cycle

Hairault, Jean-Olivier; Langot, François; Sopraseuth, … - 2014

Since the last recession, it is usually argued that older workers are less affected by the economic downturn because their unemployment rate rose less than the one of prime-age workers. This view is a myth: older workers are more sensitive to the business cycle. We document volatilities of...

Persistent link: https://www.econbiz.de/10010339640

Dispersed information and the origins of aggregate fluctuations

Grazzini, Jakob; Massaro, Domenico - 2016

In the presence of dispersed information, agents may decide to take into account the actions of other agents because of the possible additional information conveyed by these actions. We call the act of using other agents' actions in the individual decision process social learning. This paper...

Persistent link: https://www.econbiz.de/10011489440

Business cycle volatility in Germany

Buch, Claudia M.; Döpke, Jörg; Pierdzioch, Christian - 2002

Stylized facts suggest that output volatility in OECD countries has declined in recent years. However, the causes and the nature of this decline have so far been analyzed mainly for the United States. In this paper, we analyze whether structural breaks in the dynamics and the volatility of the...

Persistent link: https://www.econbiz.de/10011475861

Endogenous Growth, Monetary Shocks and Nominal Rigidities

Annicchiarico, Barbara; Pelloni, Alessandra; Rossi, Lorenza - 2010

We introduce endogenous growth in an otherwise standard NK model with staggered prices and wages. Some results follow: (i) monetary volatility negatively affects long-run growth; (ii) the relation between nominal volatility and growth depends on the persistence of the nominal shocks and on the...

Persistent link: https://www.econbiz.de/10010343890

Government deficit shocks and Okun's coefficient volatility : new insights on the austerity versus growth debate

Binh Thai Pham; Sala, Hector - 2019

This paper connects two salient economic features: (i) Fiscal shocks have asymmetric effects across business cycle phases (Gechert et al., 2019); (ii) Okun's coefficient is time varying and may be unstable. The intertwined dynamic behavior of fiscal shocks and unemployment-output trade-offs are...

Persistent link: https://www.econbiz.de/10012054782

Great volatility and great moderation

Grazzini, Jakob; Massaro, Domenico - 2018

We investigate the sources of the great changes in GDP volatility observed from 1966 to 2000. We develop a general equilibrium model and calibrate it to US data in order to characterize the contribution of micro level productivity shocks, inter-sectoral linkages and households' behavior to...

Persistent link: https://www.econbiz.de/10011921976

Land-price dynamics and macroeconomic fluctuations

Liu, Zheng; Wang, Pengfei; Zha, Tao - 2011

We argue that positive comovements between land prices and business investment are a driving force behind the broad … joint dynamics of land prices and business investment. …

Persistent link: https://www.econbiz.de/10010292308

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