Data and Code for: Flexibility and Frictions in Multisector Models

Principal Investigator(s): View help for Principal Investigator(s) Jorge Miranda-Pinto, University of Queensland; Eric Young, University of Virginia

Version: View help for Version V1

Name	File Type	Size	Last Modified
Data_and_codes_for_flexibility_and_frictions_multisector_models			08/24/2022 12:04:PM

Project Citation:

Miranda-Pinto, Jorge, and Young, Eric. Data and Code for: Flexibility and Frictions in Multisector Models. Nashville, TN: American Economic Association [publisher], 2022. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2022-09-13. https://doi.org/10.3886/E178461V1

Project Description

Summary: We show that during the Great Recession, more-flexible sectors paid lower sectoral bond spreads. We rationalize this fact with a model with input-output linkages, heterogeneous elasticities, and binding working capital constraints in the use of intermediates. We show that the difference in flexibility between upstream and downstream sectors is key for determining the role of input-output linkages in amplifying or mitigating distortions. Calibrating the model to the US economy, we find that our sectoral elasticity estimates amplify distortions by a factor of 1.7 compared to the Cobb-Douglas case, and generate an input-output multiplier 1.2 times the homogeneous elasticity case.

Scope of Project

Subject Terms: elasticity of substitution; credit spreads; working capital constraints

JEL Classification:
      E23 Macroeconomics: Production
      E32 Business Fluctuations; Cycles
      E44 Financial Markets and the Macroeconomy

Geographic Coverage: United States

Related Publications

Download this project

Published Versions

V1 [2022-09-13]

Export Metadata

Dublin Core

DDI 2.5

Report a Problem

Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.

This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.