Fixed adjustment costs and aggregate fluctuations

• 成果类型: Article
• 署名作者: Elsby, Michael W. L.; Michaels, Ryan
• 署名单位: University of Edinburgh; Federal Reserve System - USA; Federal Reserve Bank - Philadelphia
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2018.07.008
• 发表日期: 2019
• 页码: 128-147
• 关键词: Lumpy microeconomic adjustment; Ss model; Cross-sectional dynamics; Aggregate employment dynamics

摘要

This paper studies the analytics of a canonical model of lumpy microeconomic adjustment. We provide a novel characterization of the implied aggregate dynamics. In general, the distribution of firm outcomes follows a simple and intuitive law of motion that links aggregate outcomes to rates of adjustment. Analytical approximations reveal, however, that the aggregate dynamics are approximately invariant to a relevant range of adjustment costs. This neutrality is an aggregation result that emerges from a symmetry property in the distributional dynamics, independent of market equilibrium considerations. Quantitative illustrations confirm these results for parameterizations used in the employment and price adjustment literatures. (C) 2018 The Authors. Published by Elsevier B.V.