Drautzburg, Thorsten; Fernández-Villaverde, Jesús; … - 2021
. Using a Bayesian proxy-VAR estimated with U.S. data, we show how distribution shocks trigger output and unemployment … movements. To quantify the aggregate importance of these distribution shocks, we extend an otherwise standard neoclassical … growth economy. We model distribution shocks as exogenous changes in workers'bargaining power in a labor market with search …