A Plucking Model of Business Cycles

RecentEmployment
Written By Rowdy Ferret Design

A Plucking Model of Business Cycles (with Stéphane Dupraz and Emi Nakamura)

Revise and resubmit at Journal of Political Economy.

US unemployment strongly displays the asymmetry that 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. This fact favors the plucking view that recessions are shortfalls below a maximum level rather than fluctuations around a natural rate:

Rowdy Ferret Design

Oakland based web designer and developer.

Loves long walks in the woods and barbeque.

http://rowdyferretdesign.com
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