Author: Jeffrey R. Campbell
Publisher:
ISBN:
Category : Employment (Economic theory)
Languages : en
Pages : 58
Book Description
There are significant differences in the dynamics of employment over the business cycle between young and old manufacturing plants. Young plants are more sensitive to aggregate disturbances, and they respond to them along different margins. We interpret these differences as reflecting greater organizational flexibility at young plants due to the changing nature of a plant's environment as it ages. In the presence of aggregate uncertainty, differences between young and old plants' organizational flexibility allows the model to reproduce their distinct cyclical characteristics. Previous empirical studies show that small firms generally respond by more to aggregate shocks than do large firms. To the extent that small firms tend to operate young plants, our analysis suggests an alternative to conventional explanations of this evidence which appeal to imperfections in credit markets.
Organizational Flexibility and Employment Dynamics at Young and Old Plants
Author: Jeffrey R. Campbell
Publisher:
ISBN:
Category : Employment (Economic theory)
Languages : en
Pages : 58
Book Description
There are significant differences in the dynamics of employment over the business cycle between young and old manufacturing plants. Young plants are more sensitive to aggregate disturbances, and they respond to them along different margins. We interpret these differences as reflecting greater organizational flexibility at young plants due to the changing nature of a plant's environment as it ages. In the presence of aggregate uncertainty, differences between young and old plants' organizational flexibility allows the model to reproduce their distinct cyclical characteristics. Previous empirical studies show that small firms generally respond by more to aggregate shocks than do large firms. To the extent that small firms tend to operate young plants, our analysis suggests an alternative to conventional explanations of this evidence which appeal to imperfections in credit markets.
Publisher:
ISBN:
Category : Employment (Economic theory)
Languages : en
Pages : 58
Book Description
There are significant differences in the dynamics of employment over the business cycle between young and old manufacturing plants. Young plants are more sensitive to aggregate disturbances, and they respond to them along different margins. We interpret these differences as reflecting greater organizational flexibility at young plants due to the changing nature of a plant's environment as it ages. In the presence of aggregate uncertainty, differences between young and old plants' organizational flexibility allows the model to reproduce their distinct cyclical characteristics. Previous empirical studies show that small firms generally respond by more to aggregate shocks than do large firms. To the extent that small firms tend to operate young plants, our analysis suggests an alternative to conventional explanations of this evidence which appeal to imperfections in credit markets.
Working Paper Series
A Real Explanation for Heterogeneous Investment Dynamics
Author: Jonas Daniel Maurice Fisher
Publisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 44
Book Description
Household investment, that is investment in consumer durables and housing, leads non-residential fixed investment over the U.S. business cycle. This observation represents a potent challenge to real business cycle (RBC) theory. First of all the theory has been unable to account for it. In addition, research suggests the observation is driven by monetary shocks, supporting the view that these shocks play a leading role in the U.S. business cycle. This paper shows that RBC theory is consistent with the investment dynamics after all. It does so by generalizing the standard home production environment to take into account the fact that household capital is useful in market production.
Publisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 44
Book Description
Household investment, that is investment in consumer durables and housing, leads non-residential fixed investment over the U.S. business cycle. This observation represents a potent challenge to real business cycle (RBC) theory. First of all the theory has been unable to account for it. In addition, research suggests the observation is driven by monetary shocks, supporting the view that these shocks play a leading role in the U.S. business cycle. This paper shows that RBC theory is consistent with the investment dynamics after all. It does so by generalizing the standard home production environment to take into account the fact that household capital is useful in market production.
Savings of Young Parents
Author: Annamaria Lusardi
Publisher:
ISBN:
Category : Parents
Languages : en
Pages : 58
Book Description
Publisher:
ISBN:
Category : Parents
Languages : en
Pages : 58
Book Description
The Effect of Part-time Work on Wages
Author: Daniel Aaronson
Publisher:
ISBN:
Category : Part-time employment
Languages : en
Pages : 38
Book Description
Publisher:
ISBN:
Category : Part-time employment
Languages : en
Pages : 38
Book Description
Earnings Mobility in the US
Author: Bhashkar Mazumder
Publisher:
ISBN:
Category : Age and employment
Languages : en
Pages : 74
Book Description
Publisher:
ISBN:
Category : Age and employment
Languages : en
Pages : 74
Book Description
The Mis-measurement of Permanent Earnings
Author: Bhashkar Mazumder
Publisher:
ISBN:
Category : Income
Languages : en
Pages : 46
Book Description
Publisher:
ISBN:
Category : Income
Languages : en
Pages : 46
Book Description
A Note on the Estimation of Linear Regression Models with Heteroskedastic Measurement Errors
Author: Daniel Gerard Sullivan
Publisher:
ISBN:
Category : Regression analysis
Languages : en
Pages : 44
Book Description
I consider the estimation of linear regression models when the independent variables are measured with errors whose variances differ across observations, a situation that arises, for example, when the explanatory variables in a regression model are estimates of population parameters based on samples of varying sizes. Replacing the error variance that is assumed common to all observations in the standard errors-in-variables estimator by the mean measurement error variance yields a consistent estimator in the case of measurement error heteroscedacticity. However, another estimator, which I call the Heteroskedastic Errors in Variables Estimator (HEIV), is, under standard assumptions, asymptotically more efficient. Simulations show that the efficiency gains are likely to appreciable in practice. In addition, the HEIV estimator, which is equal to the ordinary least squares regression of the dependent variable on the best linear predictor of the true independent variables, is simple to compute with standard regression software.
Publisher:
ISBN:
Category : Regression analysis
Languages : en
Pages : 44
Book Description
I consider the estimation of linear regression models when the independent variables are measured with errors whose variances differ across observations, a situation that arises, for example, when the explanatory variables in a regression model are estimates of population parameters based on samples of varying sizes. Replacing the error variance that is assumed common to all observations in the standard errors-in-variables estimator by the mean measurement error variance yields a consistent estimator in the case of measurement error heteroscedacticity. However, another estimator, which I call the Heteroskedastic Errors in Variables Estimator (HEIV), is, under standard assumptions, asymptotically more efficient. Simulations show that the efficiency gains are likely to appreciable in practice. In addition, the HEIV estimator, which is equal to the ordinary least squares regression of the dependent variable on the best linear predictor of the true independent variables, is simple to compute with standard regression software.
Is the United States an Optimum Currency Area?
Author: Michael A. Kouparitsas
Publisher:
ISBN:
Category : United States
Languages : en
Pages : 54
Book Description
Publisher:
ISBN:
Category : United States
Languages : en
Pages : 54
Book Description
Information Spillovers and Factor Adjustment
Author: Luigi Guiso
Publisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 64
Book Description
Publisher:
ISBN:
Category : Business cycles
Languages : en
Pages : 64
Book Description