Replication data for: Endogenous Disasters

Principal Investigator(s):  View help for Principal Investigator(s) Nicolas Petrosky-Nadeau; Lu Zhang; Lars-Alexander Kuehn

Version:  View help for Version V1

Name File Type Size Last Modified
  CompStatic_capital_nu0p5 10/27/2021 09:39:AM
  CompStatic_capital_nu1p5 10/27/2021 09:39:AM
  CompStatic_capital_stdx0p01 10/27/2021 09:39:AM
CspSimu.m text/plain 895 bytes 10/11/2019 08:35:PM
DiscSimu.m text/plain 521 bytes 10/11/2019 08:35:PM
MultiRegressNw.m text/plain 1.7 KB 10/11/2019 08:35:PM
bartlettw.m text/plain 875 bytes 10/11/2019 08:35:PM
hpfilter.m text/plain 922 bytes 10/11/2019 08:35:PM
moments_theory_capital.mat application/octet-stream 25.5 KB 10/11/2019 08:35:PM
momongrid_capital.m text/plain 3 KB 10/11/2019 08:35:PM

Project Description

Summary:  View help for Summary Market economies are intrinsically unstable. The standard search model of equilibrium unemployment, once solved accurately with a globally nonlinear algorithm, gives rise endogenously to rare disasters. Intuitively, in the presence of cumulatively large negative shocks, inertial wages remain relatively high, and reduce profits. The marginal costs of hiring run into downward rigidity, which stems from the trading externality of the matching process, and fail to decline relative to profits. Inertial wages and rigid hiring costs combine to stifle job creation flows, depressing the economy into disasters. The disaster dynamics are robust to extensions to home production, capital accumulation, and recursive utility.

Scope of Project

Subject Terms:  View help for Subject Terms [rare disasters, labor search frictions, Macroeconomics, asset pricing]
JEL Classification:  View help for JEL Classification
      E22 Investment; Capital; Intangible Capital; Capacity
      E23 Macroeconomics: Production
      E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
      E32 Business Fluctuations; Cycles
      J41 Labor Contracts
      J63 Labor Turnover; Vacancies; Layoffs
      N12 Economic History: Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations: U.S.; Canada: 1913-
Geographic Coverage:  View help for Geographic Coverage World
Universe:  View help for Universe Many developed and developing countries in the world
Data Type(s):  View help for Data Type(s) [observational data, program source code, aggregate data]

Methodology

Data Source:  View help for Data Source Barro-Ursua historical cross-country panel of real per capita output and consumption, World Development Indicators at the World Bank, Global Ficial Data, Dimson-Marsh-Staunton dataset of asset prices, NIPA, NBER macrohistory files, Federal Reserve Bank of St. Louis, Petrosky-Nadeau and Zhang historical series of unemployment and vacancy rates, Bureau of Labor Statistics
Unit(s) of Observation:  View help for Unit(s) of Observation Country, year,

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Published Versions

V1 [2019-10-12]

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Dublin Core

DDI 2.5

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