The Israeli economy business cycle properties are different from those of most OECD countries in four main dimensions. Aggregate consumption is twenty percent more volatile than output, the trade balance is much more volatile than output and is procyclical, investment is almost five times more...

In this paper, we modify the model of Benhabib and Laroque in which the behaviour of non steady-state equilibria in the neighborhood of the goldenrule steady-state are studied, to include liquidity constraints. We observe in an example, the appearance of new cycles.

Recent works on aggregate job flows in the US economy indicate that (i) specific sectoral shocks are important to account for aggregate job flows dynamics and that (ii) aggregate creation and destruction dynamics display significant non-linearities. This paper aims to study whether a simple...