Showing 1 - 10 of 97
Over the last four decades, the U.S. economy has experienced a few secular trends, each of which may be considered undesirable in some aspects: declining labor share; rising profit share; rising income and wealth inequalities; and rising household sector leverage and associated financial...
Persistent link: https://www.econbiz.de/10014048783
We explore the long-run relationship between income risk, inequality, and the macroeconomy in an overlapping-generations model in which households face uncertain streams of labor income and returns on their savings. To manage those risks, households can apportion their savings to a bond, whose...
Persistent link: https://www.econbiz.de/10013313121
.g., cloud services) and use it to calibrate the steady-state contribution of the ICT sector to growth in aggregate U.S. labor … that are not fully accounted for in the standard narrative on ICT's contribution to economic growth, the contribution of … ICT to growth in output per hour going forward is found to be substantially larger than generally thought--1.4 percentage …
Persistent link: https://www.econbiz.de/10012962701
Workhorse search and matching models assume constant bargaining weights, while recent evidence indicates that weights vary across time and in cross section. We endogenize bargaining weights in a life-cycle search and matching model by replacing a standard Cobb-Douglas (CD) matching function with...
Persistent link: https://www.econbiz.de/10014354763
distribution of firms is one of the most important elements to understand business cycle fluctuations in the labor market. The … distribution of firms (1) determines which shocks are relevant for the labor market, (2) implies that wage rigidity does not …
Persistent link: https://www.econbiz.de/10013293226
Price-setting models with monopolistic competition and costs of changing prices exhibit coordination failure: in response to a monetary policy shock, individual agents lack incentives to change prices even when it would be Pareto-improving if all agents did so. The potential welfare gains are in...
Persistent link: https://www.econbiz.de/10014075823
We study the term structure of default-free interest rates in a sticky-price model with an occasionally binding effective lower bound (ELB) constraint on interest rates and recursive preferences. The ELB constraint induces state-dependency in the dynamics of term premiums by affecting...
Persistent link: https://www.econbiz.de/10011578779
Farmer and Nicolò (2018) show that the Farmer Monetary (FM)-model outperforms the three-equation New-Keynesian (NK)-model in post war U.S. data. In this paper, we compare the marginal data density of the FM-model with marginal data densities for determinate and indeterminate versions of the...
Persistent link: https://www.econbiz.de/10012181056
I study the dynamics of default-free bond yields and term premia using a novel equilibrium term structure model with a New-Keynesian core and imperfect information about productivity. The model generates term premia that are on average positive with sizable countercyclical variation that arises...
Persistent link: https://www.econbiz.de/10014254949
is very similar to gaps from policy institutions, but the DSGE model's estimate of potential growth has a higher variance … and substantially different covariance with GDP growth; the natural rate concept depends strongly on model assumptions and …
Persistent link: https://www.econbiz.de/10014184879