This paper investigates both analytically and quantitatively the role of intersectoral linkages in explaining sectoral employment comovement over the business cycle. We use a multisector dynamic stochastic general equilibrium model calibrated to the 2-digit SIC level intermediate input-use and...

This paper examines the implications of incomplete risk-sharing for endogenous growth and welfare in a monetary economy. The market incompleteness comes from private information on idiosyncratic productivity shocks faced by individual consumers. Inflation tends to reduce the rate of growth and...