Consumption heterogeneity, employment dynamics and macroeconomic co-movement

• 成果类型: Article
• 署名作者: Eusepi, Stefano; Preston, Bruce
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - New York; Monash University
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2014.08.002
• 发表日期: 2015
• 页码: 13-32
• 关键词: business cycles; Investment shocks; Heterogeneity; labor market dynamics

摘要

Real-business-cycle models rely on total factor productivity (TFP) shocks to explain the observed co-movement among consumption, investment and hours. However an emerging body of evidence identifies investment shocks as important drivers of business cycles. This paper shows that a neoclassical model consistent with observed heterogeneity in labor supply and consumption across employed and non-employed can generate co-movement in response non-TFP shocks. Estimation reveals fluctuations in the marginal efficiency of investment that explain the bulk of business-cycle variance in consumption, investment and hours. A corollary of the model's empirical success is the labor wedge that is not important at business-cycle frequencies. (C) 2015 Published by Elsevier B.V.