Results 1 - 10 of 1,462

Indivisible labor and the business cycle

by Gary D. Hansen - Journal of Monetary Economics , 1985
"... A growth model with shocks to technology is studied. Labor is indivisible, so all variability in hours worked is due to fluctuations in the number employed. We find that, unlike previous equilibrium models of the business cycle, this economy displays large fluctuations in hours worked and relatively ..."
Abstract - Cited by 805 (10 self) - Add to MetaCart
A growth model with shocks to technology is studied. Labor is indivisible, so all variability in hours worked is due to fluctuations in the number employed. We find that, unlike previous equilibrium models of the business cycle, this economy displays large fluctuations in hours worked

Technology, employment, and the business cycle: Do technology shocks explain aggregate fluctuations?

by Jordi Gali - American Economic Review , 1999
"... ..."
Abstract - Cited by 577 (23 self) - Add to MetaCart
Abstract not found

The Cyclical Behavior of Equilibrium Unemployment and Vacancies

by Robert Shimer - American Economic Review , 2005
"... This paper argues that a broad class of search models cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies in response to shocks of a plausible magnitude. In the U.S., the vacancy-unemployment ratio is 20 times as volatile as average labor productivity ..."
Abstract - Cited by 871 (23 self) - Add to MetaCart
This paper argues that a broad class of search models cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies in response to shocks of a plausible magnitude. In the U.S., the vacancy-unemployment ratio is 20 times as volatile as average labor

Countercyclical Pricing in Customer Markets

by Kyle Bagwell , 2002
"... I present a dynamic model of price determination in customer markets that are subject to exogenous business-cycle fluctuations. The business cycle is described in terms of a Markov process, in which market demand alternates stochastically between fast-growth (boom) and slow-growth (recession) phases ..."
Abstract - Cited by 3 (0 self) - Add to MetaCart
I present a dynamic model of price determination in customer markets that are subject to exogenous business-cycle fluctuations. The business cycle is described in terms of a Markov process, in which market demand alternates stochastically between fast-growth (boom) and slow-growth (recession

On the Need for a New Approach to Analyzing Monetary Policy ∗

by Andrew Atkeson, Patrick J. Kehoe , 2008
"... andUniversityofMinnesota We present a pricing kernel that summarizes well the main features of the dynamics of interest rates and risk in postwar U.S. data and use it to uncover how the pricing kernel has moved with the short rate. Our findings imply that standard monetary models miss an essential l ..."
Abstract - Cited by 24 (1 self) - Add to MetaCart
between policy and risk movements in an unconventional way: the central bank’s policy changes are viewed as primarily intended to compensate for exogenous business cycle fluctuations in risk that threaten to push inflation off target. This model, while an improvement over standard models, is considered

Stochastic Trends and Economic Fluctuations

by G. King, Charles I. Plosser, James H. Stock, Mark, W. Watson - American Economic Review , 1991
"... Are business cycles mainly the result of permanent shocks to productivity? This paper uses a long-run restriction implied by a large class of real-business-cycle models-identifying permanent productivity shocks as shocks to the common stochastic trend in output, consumption, and investment-to provid ..."
Abstract - Cited by 253 (9 self) - Add to MetaCart
typically explain less than half of the business-cycle variability in output, consumption, and investment. (JEL E32, C32) A central, surprising, and controversial result of some current research on real business cycles is the claim that a common stochastic trend-the cumulative effect of permanent shocks

AN ESTIMATED STOCHASTIC DYNAMIC GENERAL EQUILIBRIUM MODEL OF THE EURO AREA

by Frank Smets, Raf Wouters , 2002
"... This paper develops and estimates a stochastic dynamic general equilibrium (SDGE) model with sticky prices and wages for the euro area. The model incorporates various other features such as habit formation, costs of adjustment in capital accumulation and variable capacity utilisation. It is estimate ..."
Abstract - Cited by 363 (11 self) - Add to MetaCart
policy shocks) allows for an empirical investigation of the effects of such shocks and of their contribution to business cycle fluctuations in the euro area. Using the estimated model, the paper also analyses the output (real interest rate) gap, defined as the difference between the actual and model

An Economical Business-Cycle Model

by Pascal Michaillat, Emmanuel Saez - National Bureau of Economic Research, Inc NBER Working Papers , 2014
"... In recent decades in the US, slack on the product and labor markets has fluctuated a lot over the business cycle while inflation has been very stable. Motivated by this observation, we develop a business-cycle model in which fluctuations in demand and supply lead to fluctua-tions in slack but not in ..."
Abstract - Cited by 5 (3 self) - Add to MetaCart
In recent decades in the US, slack on the product and labor markets has fluctuated a lot over the business cycle while inflation has been very stable. Motivated by this observation, we develop a business-cycle model in which fluctuations in demand and supply lead to fluctua-tions in slack

Price-Setting with Unobservable Elasticities of Demand: The Business-Cycle Effects of Heterogeneous Expectations

by Christian Jensen , 2009
"... In a dynamic stochastic general equilibrium model with monopolistic competition and flexible prices, we show how more realistic price-setting, discarding the conventional assumption of known exogenous demand elasticities, can distort production through relative prices, thereby generating business cy ..."
Abstract - Add to MetaCart
cycle fluctuations indistinguishable from those produced by traditional productivity shocks. Initially, we do this by assuming firms must estimate their exogenous demand elasticities, which due to idiosyncratic shocks leads to heterogeneous estimates and expectations, and distorts relative prices

Can Sticky Price Models Generate Volatile and Persistent Real Exchange Rates?

by V. V. Chari, Patrick J. Kehoe, Ellen R. McGrattan , 2000
"... The central puzzle in international business cycles is that real exchange rates are volatile and persistent. The most popular story for real exchange rate fluctuations is that they are generated by monetary shocks interacting with sticky goods prices. We quantify this story and find that it can acco ..."
Abstract - Cited by 343 (6 self) - Add to MetaCart
The central puzzle in international business cycles is that real exchange rates are volatile and persistent. The most popular story for real exchange rate fluctuations is that they are generated by monetary shocks interacting with sticky goods prices. We quantify this story and find that it can
Results 1 - 10 of 1,462