In this paper we provide a thorough characterization of the asset return implied by a simple general equilibrium production economy with convex investment adjustment costs. When households have Epstein-Zin preferences, there exist plausible parameter values such that the model generates...

We estimate firm–level idiosyncratic risk in the U.S. manufacturing sector. Our proxy for risk is the volatility of the portion of growth in sales or TFP which is not explained by either industry – or economy–wide factors, or firm characteristics systematically associated with growth...

We estimate the volatility of plant-level idiosyncratic shocks in the U.S. manufacturing sector. Our measure of volatility is the variation in Revenue Total Factor Productivity which is not explained by either industry- or economy-wide factors, or by establishments' characteristics. Consistent...

Labor Force States and flows between are useful tools to model individual dynamics in the labor market. This chapter reviews recent literature uncovering substantial heterogeneity in transitions across Labor Force States. We review methods and results by replicating leading studies using...