In this paper, we construct a dynamic stochastic general equilibrium model in order to investigate the impact of credit spread shocks on the U.S. business cycle. We find that the shocks to the investment specific technology and the preference weights on consumption and leisure are the main...

This paper studies work flow dynamics in Korea from 2000 to 2011 by using data from Economically Active Population Survey (EAPS). We examine the size and cyclicality of both the gross work flows and the associated transition rates between the labor market states of employment, unemployment, and...

The role of unanticipated changes in money growth for aggregate fluctuations is reexamined using the methods of quantitative equilibrium business cycle theory. A stochastic growth model with money is constructed that has the feature, following Lucas (1972, 1975), that production and trade take...