Markups, gaps, and the welfare costs of business fluctuations[ - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Markups, gaps, and the welfare costs of business fluctuations[ write by Jordi Galí. This book was released on 2005. Markups, gaps, and the welfare costs of business fluctuations[ available in PDF, EPUB and Kindle.
Markups, Gaps, and the Welfare Costs of Business Fluctuations
Markups, Gaps, and the Welfare Costs of Business Fluctuations - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Markups, Gaps, and the Welfare Costs of Business Fluctuations write by . This book was released on 2002. Markups, Gaps, and the Welfare Costs of Business Fluctuations available in PDF, EPUB and Kindle.
Markups, Gaps, and the Welfare Costs of Business Fluctuations
Markups, Gaps, and the Welfare Costs of Business Fluctuations - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Markups, Gaps, and the Welfare Costs of Business Fluctuations write by Jordi Galí. This book was released on 2002. Markups, Gaps, and the Welfare Costs of Business Fluctuations available in PDF, EPUB and Kindle. In this paper we present a simple, theory-based measure of the variations in aggregate economic efficiency associated with business fluctuations. We decompose this indicator, which we refer to as 'the gap', into two constituent parts: a price markup and a wage markup, and show that the latter accounts for the bulk of the fluctuations in our gap measure. Finally, we derive a measure of the welfare costs of business cycles that is directly related to our gap variable, and which takes into account explicitly the existence of a varying aggregate inefficiency. When applied to postwar U.S. data, for plausible parametrizations, our measure suggests welfare losses of fluctuations that are of a higher order of magnitude than those derived by Lucas (1987). It also suggests that the major postwar recessions involved substantial efficiency costs.
Hysteresis and Business Cycles
Hysteresis and Business Cycles - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Hysteresis and Business Cycles write by Ms.Valerie Cerra. This book was released on 2020-05-29. Hysteresis and Business Cycles available in PDF, EPUB and Kindle. Traditionally, economic growth and business cycles have been treated independently. However, the dependence of GDP levels on its history of shocks, what economists refer to as “hysteresis,” argues for unifying the analysis of growth and cycles. In this paper, we review the recent empirical and theoretical literature that motivate this paradigm shift. The renewed interest in hysteresis has been sparked by the persistence of the Global Financial Crisis and fears of a slow recovery from the Covid-19 crisis. The findings of the recent literature have far-reaching conceptual and policy implications. In recessions, monetary and fiscal policies need to be more active to avoid the permanent scars of a downturn. And in good times, running a high-pressure economy could have permanent positive effects.
The Volatility Costs of Procyclical Lending Standards
The Volatility Costs of Procyclical Lending Standards - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Volatility Costs of Procyclical Lending Standards write by Ms.Silvia Sgherri. This book was released on 2009-03-01. The Volatility Costs of Procyclical Lending Standards available in PDF, EPUB and Kindle. The ongoing financial turmoil has triggered a lively debate on ways of containing systemic risk and lessening the likelihood of boom-and-bust episodes in credit markets. Particularly, it has been argued that banking regulation might attenuate procyclicality in lending standards by affecting the behavior of banks’ capital buffers. This paper uses a two-country DSGE model with financial frictions to illustrate how procyclicality in borrowing limits reinforces the “overreaction” of asset prices to shocks described by Aiyagari and Gertler (1999), and to quantify the stabilization gains from policies aimed at smoothing cyclical swings in credit conditions. Results suggest that, in financially constrained economies, the ensuing volatility reduction in equity prices, investment, and external imbalances would be sizable. In the presence of cross-border spillovers, gains would be even higher.
