What would you do if on January 13, 2016, you had won the $1.5 billion Powerball jackpot? The prize gives you the choice of a smaller lump sum now or the full jackpot parceled out for years to come. For the New York Times and numerous financial experts, the right choice is clear: take the money...

In this paper we study the transmission for capital depreciation shocks. The existing literature in the Real Business Cycle tradition has concluded that these shocks are irrelevant for business cycle fluctuations. We show that these shocks are potentially important drivers of aggregate...

We develop a stochastic general equilibrium model in which maintenance endogenously affects the capital depreciation rate. The model performs well in generating maintenance series that match closely existing survey-based measures for Canada. Maintenance is procyclical and comoves almost always...

Im Spätsommer 2022 ist die Weltwirtschaft im Abschwung. Anhaltend hohe Inflationsraten haben die US-Notenbank und viele weitere Zentralbanken veranlasst, mit einer Straffung ihrer Geldpolitik zu beginnen. Zudem ist seit dem Ausbruch des Ukraine-Kriegs Energie knapper und teurer geworden....