Institution
CIREQ
About: CIREQ is a based out in . It is known for research contribution in the topics: Unemployment & Welfare. The organization has 51 authors who have published 139 publications receiving 3160 citations.
Papers published on a yearly basis
Papers
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TL;DR: In this paper, the authors extended and refined the calibration methodology along several important dimensions, such as accounting for home production is important both in measuring calibration targets and in organizing the data in a model-consistent fashion.
Abstract: Calibration has become a standard tool of macroeconomics. This paper extends and refines the calibration methodology along several important dimensions. First, accounting for home production is important both in measuring calibration targets and in organizing the data in a model-consistent fashion. For this reason, thinking about home production is important even if the model under consideration does not include home production. Second, investment-specific technological change is included because of its strong balanced growth parameter restrictions. Third, the measurement strategy is laid out as transparently as possible so that others can easily replicate the underlying calculations. The data and calculations used in this paper are available on the web.
221 citations
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TL;DR: In this paper, the authors investigate the welfare effects of eliminating business cycles in a model with substantial consumer heterogeneity and find that very poor consumers gain a lot when cycles are removed (the long-term unemployed as much as around 30%), as do very rich consumers, whereas the majority of consumers see much smaller gains from removing cycles.
158 citations
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TL;DR: In this article, a Bewley-Huggett-Aiyagari incomplete-market model with labor-market frictions is analyzed, and the authors show that higher insurance is beneficial for consumption smoothing, but because it raises workers' outside option value, it discourages firm entry.
Abstract: We analyze a Bewley-Huggett-Aiyagari incomplete-markets model with labor-market frictions. Consumers are subject to idiosyncratic employment shocks against which they cannot insure directly. The labor market has a Diamond-Mortensen-Pissarides structure: firms enter by posting vacancies and match with workers bilaterally, with match probabilities given by an aggregate matching function. Wages are determined through Nash bargaining. We also consider aggregate productivity shocks, and a complete set of contingent claims conditional on this risk. We use the model to evaluate a tax-financed unemployment insurance scheme. Higher insurance is beneficial for consumption smoothing, but because it raises workers' outside option value, it discourages firm entry. We find that the latter effect is more potent for welfare outcomes; we tabulate the effects quantitatively for different kinds of consumers. We also demonstrate that productivity changes in the model - in steady state as well as stochastic ones - generate rather limited unemployment effects, unless workers are close to indifferent between working and not working; thus, recent findings are corroborated in our more general setting.
148 citations
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TL;DR: Briey et al. as discussed by the authors showed that the relationship between entrepreneurship and education is Ushaped, that many entrepreneurs start a business out of necessity, and that returns to entrepreneurship have a much larger cross-sectional variance than returns to wage work.
136 citations
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TL;DR: In this article, the authors analyzed the implications of plant-level dynamics over the business cycle and proposed a general equilibrium model of plant entry, exit, and employment and compared its predictions to the data.
Abstract: This paper analyzes the implications of plant-level dynamics over the business cycle. We first document basic patterns of entry and exit of U.S. manufacturing plants, in terms of employment and productivity, between 1972 and 1997. We show how entry and exit patterns vary during the business cycle, and that the cyclical pattern of entry is very different from the cyclical pattern of exit. Second, we build a general equilibrium model of plant entry, exit, and employment and compare its predictions to the data. In our model, plants enter and exit endogenously, and the size and productivity of entering and exiting plants are also determined endogenously. Finally, we explore the policy implications of the model. Imposing a firing tax that is constant over time can destabilize the economy by causing fluctuations in the entry rate. Entry subsidies are found to be effective in stabilizing the entry rate and output.
132 citations
Authors
Showing all 51 results
Name | H-index | Papers | Citations |
---|---|---|---|
Jean-Marie Dufour | 44 | 273 | 6624 |
René Garcia | 40 | 172 | 7026 |
Walter Bossert | 34 | 223 | 5241 |
Francisco J. Ruge-Murcia | 28 | 83 | 2483 |
John W. Galbraith | 27 | 92 | 6756 |
Erin Strumpf | 25 | 106 | 2182 |
Sílvia Gonçalves | 25 | 71 | 2650 |
Huan Xie | 24 | 137 | 1728 |
Simon van Norden | 24 | 80 | 3949 |
Leonardo Baccini | 23 | 84 | 1989 |
Toshihiko Mukoyama | 23 | 78 | 1829 |
Nikolay Gospodinov | 22 | 91 | 1295 |
Lynda Khalaf | 21 | 107 | 1646 |
Paul Gomme | 20 | 71 | 2284 |
Pierre Lasserre | 20 | 109 | 1335 |