Several authors have proposed staggered wage bargaining as a way to introduce sticky wages into search and matching models while preserving individual rationality. I evaluate the quantitative implications of such an approach. I feed through a series of estimated shocks from US data into a search...

Capitalism is characterized by booms and busts. Periods of strong growth in output alternate with periods of declines in economic growth. Every macro-economic theory should attempt to explain these endemic business cycle movements. In this paper I present two paradigms that attempt to explain...

We compare the numerical methods that are most widely applied in the computation of the standard business cycle model with flexible labor. The numerical techniques imply economically insignificant differences with regard to business cycle summary statistics except for the volatility of...

We describe an algorithm that is able to compute the solution of a singular linear difference system under rational expectations. The algorithm uses the Generalized Schur Factorization and is illustrated by a simple example.

The business cycles theories of Wicksell (1898), Schumpeter (1912), Mises (1912), Hayek (1929, 1935) and Minsky (1986, 1992) explain business cycles by distorted prices on capital markets, buoyant credit expansion and overinvestment. The exuberance during the boom endogenously causes the...

The recent financial crisis has put the spotlight on the rapid rise in credit which preceded it. In this paper, we provide an empirical and theoretical analysis of the credit boom and the macroeconomic context in which it developed. We find that the boom was unusually long and associated with...

In makroökonomischen Theorien findet häufig eine separate Betrachtung von Wachstums- und Konjunkturphänomenen statt. Untersuchungen des Konjunkturverlaufs richten den Blick zumeist auf kurzfristige Anpassungsprozesse, wohingegen sich wachstumstheoretische Fragestellungen auf die langfristige...

The purpose of this thesis is twofold: First, it aims at detecting empirical regularities of the business cycle in Denmark, Germany and the U.S. Second, it tries to give a theoretical explanation for these stylized facts. The thesis is fully in line with the modern analysis of business cycles in...