Showing 1 - 10 of 30
Persistent link: https://www.econbiz.de/10005429668
Persistent link: https://www.econbiz.de/10005429758
Persistent link: https://www.econbiz.de/10005429790
Persistent link: https://www.econbiz.de/10005429795
In this article I provide a perspective on the current state of modern business cycle theory. This theory has developed from an application of the Arrow-Debreu general equilibrium framework to the neoclassical growth model. On the positive side, this approach is able to accommodate various...
Persistent link: https://www.econbiz.de/10010724737
Search models of the labor market suggest that a significant determinant of job creation decisions by firms is the expected value of the initial and future real wages that firms have to pay to workers in newly formed employment relationships. Until recently, the focus of the empirical literature...
Persistent link: https://www.econbiz.de/10010724744
We demonstrate the possibility of indeterminacy and nonexistence of equilibrium dynamics in a standard business cycle model with search and matching frictions in the labor market. Our results arise for empirically plausible parameterizations and do not rely on a mechanism such as increasing returns.
Persistent link: https://www.econbiz.de/10010724749
In this article, we study the interplay between political factors and default decisions. First, we survey two branches of theoretical studies. One shows that governments may be willing to repay their debt because it is in the best interest of local agents with political power. The other one...
Persistent link: https://www.econbiz.de/10010724753
We first study growth and risk sharing in a stochastic growth model with preference shocks and two risk-averse agents. In periods in which one of the agents needs extra consumption (insurance), it is socially optimal to reduce the consumption of the other agent (redistribution) and also to...
Persistent link: https://www.econbiz.de/10010724754
This article considers the question, raised by Beaudry and Portier in their recent articles, of whether "news shocks" can lead to expansions and contractions that look like business cycle movements. News shocks are to be thought of solely as affecting expectations (regarding future events) and...
Persistent link: https://www.econbiz.de/10011026858