This paper investigates a role of supply chain network in transmitting housing market disruptions during the Great Recession. We build up a unique micro-level data that combines local housing market condition, firms' sales in each local market, and firm-level supply chain network information....

We study a business cycle with a Translog production function. We empirically identify a complementarity between labor and energy that leads to "procyclical" returns to scale, which is not compatible with the tightly parameterized production functions commonly used in the literature...

We study business cycles with cyclical returns to scale. Contrary to tightly parameterized production functions (Cobb-Douglas and Constant Elasticity of Substitution), we empirically identify strong input complementarity that leads to procyclical returns to scale. We therefore propose a flexible...