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Garey Ramey

Bio: Garey Ramey is an academic researcher from University of California, San Diego. The author has contributed to research in topics: Unemployment & Beveridge curve. The author has an hindex of 40, co-authored 83 publications receiving 8977 citations. Previous affiliations of Garey Ramey include University of Illinois at Urbana–Champaign.


Papers
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TL;DR: This paper found that countries with higher volatility have lower growth and that government spending-induced volatility is negatively associated with growth even after controlling for both time and country-fixed effects, and that the addition of standard control variables strengthened the negative relationship.
Abstract: This paper presents empirical evidence against the standard dichotomy in macroeconomics that separates growth from the volatility of economic fluctuations. In a sample of 92 countries as well as a sample of OECD countries, we find that countries with higher volatility have lower growth. The addition of standard control variables strengthens the negative relationship. We also find that government spending-induced volatility is negatively associated with growth even after controlling for both time- and country-fixed effects.

1,958 citations

Posted Content
TL;DR: In this paper, the authors present empirical evidence against the standard dichotomy in macroeconomics that separates growth from the volatility of economic fluctuations and find that countries with higher volatility have lower growth.
Abstract: This paper presents empirical evidence against the standard dichotomy in macroeconomics that separates growth from the volatility of economic fluctuations. In a sample of ninety-two countries as well as a sample of OECD countries, the authors find that countries with higher volatility have lower growth. The addition of standard control variables strengthens the negative relationship. The authors also find that government spending-induced volatility is negatively associated with growth even after controlling for both time- and country-fixed effects. Copyright 1995 by American Economic Association.

1,585 citations

Journal ArticleDOI
TL;DR: This paper developed and quantitatively implemented a dynamic general equilibrium model with labor market matching and endogenous job destruction, which produces a close match with data on" job creation and destruction, and showed that cyclical fluctuations in the job destruction rate serve to magnify the" effects of productivity shock on output, as well as making the effects much more persistent.
Abstract: We develop and quantitatively implement a dynamic general equilibrium model with labor" market matching and endogenous job destruction. The model produces a close match with data on" job creation and destruction. Cyclical fluctuations in the job destruction rate serve to magnify the" effects of productivity shock on output, as well as making the effects much more persistent. " Interactions between household savings decisions and separation decisions in employment" relationships play a key role in propagating shocks.

677 citations

Journal ArticleDOI
TL;DR: In this article, the authors consider propagation of aggregate shocks in a dynamic general-equilibrium model with labor market matching and endogenous job destruction and show that cyclical fluctuations in the job-destruction rate magnify the output effects of shocks, as well as making them much more persistent.
Abstract: This paper considers propagation of aggregate shocks in a dynamic general-equilibrium model with labor-market matching and endogenous job destruction Cyclical fluctuations in the job-destruction rate magnify the output effects of shocks, as well as making them much more persistent Interactions between capital adjustment and the job-destruction rate play an important role in generating persistence Propagation effects are shown to be quantitatively substantial when the model is calibrated using job-flow data incorporating costly capital adjustment leads to significantly greater propagation

562 citations

Journal ArticleDOI
TL;DR: This paper used CPS gross flow data, adjusted for margin error and time aggregation error, to analyze the business cycle dynamics of separation and job finding rates and quantify their contributions to overall unemployment variability.
Abstract: This paper uses CPS gross flow data, adjusted for margin error and time aggregation error, to analyze the business cycle dynamics of separation and job finding rates and to quantify their contributions to overall unemployment variability. Cyclical changes in the separation rate lead those of unemployment, while the job finding rate and unemployment move contemporaneously. Fluctuations in the separation rate explain between 40 and 50 percent of fluctuations in unemployment, depending on how the data are detrended. The authors results suggest an important role for the separation rate in explaining the cyclical behavior of unemployment.

369 citations


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Book
01 Jan 1994
TL;DR: A Course in Game Theory as discussed by the authors presents the main ideas of game theory at a level suitable for graduate students and advanced undergraduates, emphasizing the theory's foundations and interpretations of its basic concepts.
Abstract: A Course in Game Theory presents the main ideas of game theory at a level suitable for graduate students and advanced undergraduates, emphasizing the theory's foundations and interpretations of its basic concepts. The authors provide precise definitions and full proofs of results, sacrificing generalities and limiting the scope of the material in order to do so. The text is organized in four parts: strategic games, extensive games with perfect information, extensive games with imperfect information, and coalitional games. It includes over 100 exercises.

7,018 citations

Posted Content
TL;DR: In this paper, the authors presented a data set that improves the measurement of educational attainment for a broad group of countries, and extended their previous estimates for the population over age 15 and over age 25 up to 1995 and provided projections for 2000.
Abstract: This paper presents a data set that improves the measurement of educational attainment for a broad group of countries. We extend our previous estimates of educational attainment for the population over age 15 and over age 25 up to 1995 and provide projections for 2000. We discuss the estimation method for the measures of educational attainment and relate our estimates to alternative international measures of human capital stocks.

3,763 citations

Posted Content
TL;DR: In this paper, a model with a time varying second moment is proposed to simulate a macro uncertainty shock, which produces a rapid drop and rebound in aggregate output and employment, which occurs because higher uncertainty causes firms to temporarily pause their investment and hiring.
Abstract: Uncertainty appears to jump up after major shocks like the Cuban Missile crisis, the assassination of JFK, the OPEC I oil-price shock and the 9/11 terrorist attack This paper offers a structural framework to analyze the impact of these uncertainty shocks I build a model with a time varying second moment, which is numerically solved and estimated using firm level data The parameterized model is then used to simulate a macro uncertainty shock, which produces a rapid drop and rebound in aggregate output and employment This occurs because higher uncertainty causes firms to temporarily pause their investment and hiring Productivity growth also falls because this pause in activity freezes reallocation across units In the medium term the increased volatility from the shock induces an overshoot in output, employment and productivity Thus, second moment shocks generate short sharp recessions and recoveries This simulated impact of an uncertainty shock is compared to VAR estimations on actual data, showing a good match in both magnitude and timing The paper also jointly estimates labor and capital convex and non-convex adjustment costs Ignoring capital adjustment costs is shown to lead to substantial bias while ignoring labor adjustment costs does not

3,405 citations

Journal ArticleDOI
TL;DR: In this article, the authors argue that the textbook search and matching model cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies in response to shocks of a plausible magnitude.
Abstract: This paper argues that the textbook search and matching model cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies in response to shocks of a plausible magnitude. In the United States, the standard deviation of the vacancy-unemployment ratio is almost 20 times as large as the standard deviation of average labor productivity, while the search model predicts that the two variables should have nearly the same volatility. A shock that changes average labor productivity primarily alters the present value of wages, generating only a small movement along a downward-sloping Beveridge curve (unemploymentvacancy locus). A shock to the separation rate generates a counterfactually positive correlation between unemployment and vacancies. In both cases, the model exhibits virtually no propagation. (JEL E24, E32, J41, J63, J64)

2,672 citations

Journal ArticleDOI
TL;DR: The theories of supermodular optimization and games provide a framework for the analysis of systems marked by complementarity and are used to analyze the characteristic features of the Lincoln Electric Company's strategy and structure.

2,415 citations