The purpose of this note is to demonstrate a sufficient condition for discrete tâtonnement process to lead to chaos in a general equilibrium model with multiple commodities. The result indicates that as the speed of price adjustment increases the discrete tâtonnement process is complex in a general equilibrium economy in which there are multiple equilibria. JEL classification: E32; C62 Keywards...

Economists model time as continuous or discrete. The recent literature on continuous time models with delays should help to bridge the gap between these two families of models. In this note, we propose a simple time–to–build model in continuous time, and show that a discrete time version is a true representation of the continuous time problem under some sufficient conditions. JEL codes: O40, E3...

This paper presents a procedure for studying industrial performance and related issues such as changes in the wage structure. This procedure combines cluster analysis and discriminant analysis as a package, and applies this package to time series data. This enables us to organize industrial data into groups with similar wage or performance histories and then to extract summary time-series showi...

We provide new evidence on business cycle fluctuations in skewed labor income risk the United States, Germany, Sweden, and France. document four results. First, all countries, skewness of individual growth is strongly procyclical, whereas its variance flat acyclical. Second, this result also holds for continuously employed, full-time workers, indicating that hours margin not main driver; additi...

The challenge for stabilization policy presented by the COVID-19 pandemic stems above all from disruption of circular flow payments, resulting in a failure what Keynes (1936) calls “effective demand.” As consequence, economic activity many sectors can be inefficiently low, and interest-rate cannot eliminate distortions—not because limit on extent to which interest rates reduced, but reductions ...

Business cycle recoveries have slowed in recent decades. This slowdown comes entirely from female employment, as women’s employment rates converged toward men’s during the past half-century. But does growth of translate into a for overall rates? We estimate extent to which women “crowd out” men labor market across US states, and find that it is small. Through lens general equilibrium model with...

We formalize the editorial role of news media in a multisector economy and show that can be an independent source business cycle fluctuations, even when they report accurate information. Public reporting about subset sectoral developments are newsworthy but unrepresentative causes firms across all sectors to hire too much or little labor. construct historical measures US coverage use them calib...

We provide predictions for DSGE models with incomplete information that are robust across structures. Our approach maps an incomplete-information model into a full-information economy time-varying expectation wedges and provides conditions ensure the rationalizable by some structure. Using our approach, we quantify potential importance of as source business cycle fluctuations in otherwise frict...

This paper examines the long-run effects of 1980–1982 recession on education and income. Using confidential census data, I estimate difference-in-difference regressions that exploit variation across counties in severity cohorts age at time recession. For individuals 0–10 1979, a 10 percent decrease earnings per capita their county birth reduces four-year college degree attainment by 15 adulthoo...

We consider a linear stochastic univariate rational expectations model, with a predetermined variable, and provide alternative representations of SSEs (stationary sunspot equilibria). For a strict subset of the parameter space there exist SSEs that are locally stable under least squares learning provided agents use a common factor representation for their estimated law of motion. These results ...