stockout-avoidance motive. The model's predictions are broadly consistent with the U.S. business cycle and key features of …

. This paper provides yet another case when first-order methods may be inadequate for capturing the business cycle properties … induce asymmetric business cycles and nonlinear income effects that are not fully captured by linear approximation methods …

.S. business cycles and asset price volatility. Section 4 concludes the paper. 2 The Basic Model 2.1 Firms There is a continuum of … price movements lead the business cycle and provide a key litmus test of business cycle models (see Cogley and Nason, 1995 … the U.S. economy. In the data, the correlation between stock prices and output at the business cycle frequencies is 0 …

, 1988, �Production, Growth, and Business Cycles: I. The Basic Neoclassical Model,�Journal of Monetary Economics, 21(2-3), pp …�nite-horizon, representative-agent neoclassical growth model and its monetized versions remain the paradigm of business-cycle and monetary policy … (1999) show that the welfare costs of business cycles with uninsurable individual risks are small and similar to those …