| 000 | 02693cam a22003617 4500 | ||
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| 001 | w26351 | ||
| 003 | NBER | ||
| 005 | 20211020104003.0 | ||
| 006 | m o d | ||
| 007 | cr cnu|||||||| | ||
| 008 | 210910s2019 mau fo 000 0 eng d | ||
| 100 | 1 | _aDupraz, Stéphane. | |
| 245 | 1 | 2 |
_aA Plucking Model of Business Cycles / _cStéphane Dupraz, Emi Nakamura, Jón Steinsson. |
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_aCambridge, Mass. _bNational Bureau of Economic Research _c2019. |
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_a1 online resource: _billustrations (black and white); |
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| 490 | 1 |
_aNBER working paper series _vno. w26351 |
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| 500 | _aOctober 2019. | ||
| 520 | 3 | _aIn standard models, economic activity fluctuates symmetrically around a "natural rate" and stabilization policies can dampen these fluctuations but do not affect the average level of activity. An alternative view--labeled the "plucking model" by Milton Friedman--is that economic fluctuations are drops below the economy's full potential ceiling. We show that the dynamics of the unemployment rate in the US display a striking asymmetry that strongly favors the plucking model: increases in unemployment are followed by decreases of similar amplitude, while the amplitude of the increase is not related to the amplitude of the previous decrease. We develop a microfounded plucking model of the business cycle. In our model, the plucking asymmetry results from downward nominal wage rigidity, which we rationalize using a search model. Our model also matches the fact that unemployment rises much faster during recessions than it falls during expansions. In our plucking model, stabilization policy lowers average unemployment and thereby yields sizable welfare gains. | |
| 530 | _aHardcopy version available to institutional subscribers | ||
| 538 | _aSystem requirements: Adobe [Acrobat] Reader required for PDF files. | ||
| 538 | _aMode of access: World Wide Web. | ||
| 588 | 0 | _aPrint version record | |
| 690 | 7 |
_aE24 - Employment • Unemployment • Wages • Intergenerational Income Distribution • Aggregate Human Capital • Aggregate Labor Productivity _2Journal of Economic Literature class. |
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| 690 | 7 |
_aE32 - Business Fluctuations • Cycles _2Journal of Economic Literature class. |
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| 690 | 7 |
_aE52 - Monetary Policy _2Journal of Economic Literature class. |
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| 700 | 1 |
_aNakamura, Emi. _917406 |
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| 700 | 1 |
_aSteinsson, Jón. _921164 |
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| 710 | 2 | _aNational Bureau of Economic Research. | |
| 830 | 0 |
_aWorking Paper Series (National Bureau of Economic Research) _vno. w26351. |
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| 856 | 4 | 0 | _uhttps://www.nber.org/papers/w26351 |
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_yAcceso en línea al DOI _uhttp://dx.doi.org/10.3386/w26351 |
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_2ddc _cW-PAPER |
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_c321772 _d280334 |
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