The authors estimate the effect of financial incentives for reenlistment on military retention rates using a stochastic dynamic programming model. They show that the computational burden of the model is relatively low even when estimated on panel data with unobserved heterogeneity. The estimates...

Two generally accepted regularities about US employment in the Great Moderation are the decline in the procyclicality of labor productivity and the increase in the volatility of labor relative to output. We test these stylized facts for robustness to statistical methodology and find the decline...