This paper provides a theory of financial frictions as a transmission mechanism for primitive shocks to translate into aggregate TFP fluctuations. In our model, financial frictions distort existing capital allocation across different production units, rather than investment in new capital. News...

This paper incorporates two features of housing in a life-cycle analysis of social security: housing as a durable good and housing market frictions. We find that with housing as a durable good unfunded social security substantially crowds out housing consumption throughout the life cycle. By...

In this paper, we show that news on future technological improvement can trigger an immediate economic expansion in a model with financial friction on capital allocation. The arrivial of good news on future technology reduces such frictions and generates significant increase in current Total...

This paper empirically examines factors influencing consumers' evaluation and adoption intention of really new products. Combining construal level theory with literature on new product evaluation and adoption, we found an asymmetry in the conditional importance of benefit and cost, both as...

We consider estimating the variance of a general U-statistic when it is used as an unbiased estimator of the parameter of interesttheta=E(K) where K is the kernel function. Long established results demonstrate the asymptotic normality of U-statistics and their asymptotic variance under...