WitrynaThis paper uses an estimated dynamic stochastic general equilibrium model with nominal and real rigidities, to describe the sources of business cycle fluctuations in Chile. Our results show that foreign shocks and domestic supply shock account for a large share of output fluctuations over the last 20 years. WitrynaThis paper argues that imperfect risk-sharing among heterogeneous households, due to frictions in asset markets, amplifies price stickiness endogenously and consequently increases the persistence and volatility of business cycles. The main economic mechanism is an idiosyncratic wealth effect on individual household’s labor supply.
Discussion of Imperfect Risk-Sharing and the Business Cycle
Witrynaquantify the role of imperfect risk-sharing for business cycle fluctuations. In our application, we find that deviations from perfect risk-sharing contributed significantly … Witrynaintra-cohort risk sharing is perfect, and the shares of labor or dividend income accruing to a given cohort of investors are locally deterministic processes,1 albeit random over the long run. In this setup we introduce a) imperfect inter-cohort risk sharing and b) recursive utility with a preference for early resolution of uncertainty. how many ships does us army have
Imperfect Risk-Sharing and the Business Cycle NBER
Witryna4 mar 2024 · This paper examines the impact of unemployment insurance on the propagation of monetary disturbances in a staggered price model of the business … Witryna1 cze 2024 · This paper studies the macroeconomic implications of imperfect risk sharing implied by a class of New Keynesian models with heterogeneous agents. The … Witryna5 sie 2024 · This paper studies the aggregate implications of imperfect risk-sharing implied by a class of New Keynesian models with idiosyncratic income risk and incomplete financial markets. The models in this class can be equivalently represented as an economy with a representative household that has state-dependent preferences. how did judith die