Building on a frequency-domain identification within a nonlinear Structural Dynamic Factor Model, we study the nonlinear transmission of demand and supply shocks, the two shocks accounting for the bulk of fluctuations in U.S. macroeconomic variables. Supply shocks propagate symmetrically and are...

It is well established that the U.S. prewar output was more volatile and less shock persistent than the postwar output. This is often attributed to the data interpolation employed to construct the prewar series. Our analytical results, however, indicate that commonly used linear interpolation...

This study investigates the effects of changes in job-filling and job-separation rates on economic fluctuations using an efficiency wage model. It introduces a relationship between labor input and the strategic labor input target into the model. This framework enables us to analyze situations in...