in the long run.

steep decline in residential investment since 2005.

Why is unemployment higher for young individuals than for the old? Why are business cycle fluctuations in employment more pronounced for the young than for the old? We address these questions in the context of a search-and-matching model of the labor market that features learning about...

Residential investment before the mid 1980s was very volatile and since then it has been much less volatile. Before the 1980s mortgage markets were highly regulated and mortgage opportunities were limited, while large numbers of baby-boom households were acquiring their first house. Since 1980...