This Paper generalizes the standard habit formation model to an environment in which agents form habits over individual varieties of goods as opposed to over a composite consumption good. We refer to this preference specification as ‘deep habit formation’. Under deep habits, the demand...

In recent years some paers have been bublished that deal with the forecasting performance of indicators for the German economy. The real-time aspect, however, was largely neglected. This article analyses the information content of some ifo indicators (the business climate index for the...

This paper explores the effects of the US business cycle on US stock market returns through an analysis of the equity risk premium. We propose a new methodology based on the SDF approach to asset pricing that allows us to uncover the different effects of aggregate demand and supply shocks. We...

This paper explores a macroeconomic model of the business cycle in which stickiness of information is pervasive. We start from a familiar benchmark classical model and add to it the assumption that there is sticky information on the part of consumers, workers, and firms. We evaluate the model...

We explore the business cycle implications of expectation shocks and of two well-known psychological biases, optimism and overconfidence. The expectations of optimistic agents are biased toward good outcomes, while overconfident agents overestimate the precision of the signals that they receive....

This Paper compares the dynamic impact of fiscal policy on macroeconomic variables implied by a large class of general equilibrium models with the empirical results from an identified vector autoregression. In the data we find that positive innovations in government spending are followed by...

Business changes challenge the predictability of the workplace formation. In the broader sense, business change affects workplaces through forming and re‐forming groups, teams and business units, so causing ‘churn’ in workplaces. The aim of this paper is to present research evidence on...

Purpose – What effect do different business environments, caused primarily by changes in GDP, have on property management of growth firms? Design/methodology/approach – This paper investigates the dynamic effects of two successive periods on property management variables with data from 387...

Purpose – To establish the best approaches that companies operating within a cyclical economic environment should adopt when marketing their products. Design/methodology/approach – A structural equation modelling procedure is applied to the examination of the influences on corporate...

Purpose – The purpose of this paper is to explore the link between selected market orientation dimensions, HRM, and innovation, and their impact on organizational performance before and during the current economic crisis in Slovenia. Design/methodology/approach – The data for the analysis...