Search Complementarities, Aggregate Fluctuations, and Fiscal Policy

• 成果类型: Article
• 署名作者: Fernandez-Villaverde, Jesus; Mandelman, Federico; Yu, Yang; Zanetti, Francesco
• 署名单位: University of Pennsylvania; National Bureau of Economic Research; Centre for Economic Policy Research - UK; Federal Reserve System - USA; Federal Reserve Bank - Atlanta; Shanghai Jiao Tong University; University of Oxford
• 刊物名称: REVIEW OF ECONOMIC STUDIES
• ISSN/ISSBN: 0034-6527
• DOI: 10.1093/restud/rdae053
• 发表日期: 2025
• 页码: 2502-2536
• 关键词: Equilibrium selection; strategic uncertainty; business cycles; unemployment; models; games

摘要

We document five novel facts about the role of search effort in forming trading relationships among firms by combining a variety of micro and macro datasets. These facts strongly suggest the presence of search complementarities. To study the implications of these facts for aggregate fluctuations, we build a dynamic general equilibrium model, disciplined by our new firm-level evidence on search effort. The model matches key aspects of the macro and micro data that have remained unaccounted for by standard models, including the time-varying bimodal distribution of output and the strong, nonlinear propagation of shocks. Also, changes to the volatility of shocks have nonlinear effects on macroeconomic fluctuations that advance a novel interpretation of the Great Moderation. Finally, we provide a new account of the state-dependent effects of fiscal policy.