Separations are noticeably more countercyclical for workers who average shorter workweeks. This pattern is mirrored in wage cyclicality; wages are less procyclical for those who work shorter hours. But separations, counter to our model predictions, are not higher in recessions nor heavily...

Data from a heterogeneous-agents economy with incomplete asset markets and indivisible labor supply are simulated under various scal policy regimes and an approximating representative-agent model is estimated. Preference and technology parameter estimates of the representative-agent model are...

We develop a multi-country quantitative model of the global distribution of current account and external balances. Countries accumulate domestic capital and foreign assets to smooth consumption over time against exogenous productivity shocks in the presence of liquidity constraints. In...

We identify cyclical turning points for 74 U.S. manufacturing industries and uncover new empirical regularities: (a) industries tend to comove between expansion and contraction phases over the business cycle; (b) clusters of industry turning points are highly asymmetric between peaks and troughs:...

We consider a matching model of employment with wages that are flexible for new hires, but sticky within matches. We depart from standard treatments of sticky wages by allowing effort to respond to the wage being too high or low. Shimer (2004) and others have illustrated that employment in the...

Worker heterogeneity in productivity and labor supply is introduced into a matching model. Workers who earn high wages and work high-hours are identified as those with strong market comparative advantage—high rents from being employed. The model is calibrated to match separation, job finding,...