This document summarizes a framework for analyzing the impact of business cycles on endogenous growth. It presents a model with intermediate goods producers that invest in R&D to improve quality and productivity. General equilibrium is achieved through free entry. Higher entry or fixed costs lower growth and the number of active firms. The model can analyze how exogenous productivity shocks influence growth and business cycles, and how entry costs impact dynamics along the cycle. Future work will examine impulse responses and the role of costs in optimizing growth given shock characteristics.
International Journal of Research in Engineering and Science is an open access peer-reviewed international forum for scientists involved in research to publish quality and refereed papers. Papers reporting original research or experimentally proved review work are welcome. Papers for publication are selected through peer review to ensure originality, relevance, and readability.
The reference of this book is from Dominick Salvatore's Managerial Economics. It is in chapter 8 with the following topic: Linear Programming, Production process, Feasible region, Optimal solution, Objective function, Inequality constraints, Nonnegativity constraints, Decision variables, Binding constraints, Slack variable, Simplex method, Primal problem, Dual problem, Shadow price, Duality theorem and Logistic management.
Banque de France's Workshop on Granularity: Basile Grassi's slides, June 2016 Soledad Zignago
Large Firm Dynamics and the Business Cycle, slides by Basile Grassi (University of Oxford & Nuffield College), joint work with Vasco Carvalho (University of Cambridge & CREI, University Pompeu Fabra GSE & CEPR), at the Banque de France and Sciences Po joint workshop on Granularity of Macroeconomics Fluctuations, 24 June 2016. Slides of presentations & discussions are available online: https://www.banque-france.fr/en/economics-statistics/research/seminars-and-symposiums/research-workshop-on-the-granularity-of-macroeconomic-fluctuations-where-do-we-stand.html
Dierent methods have been used in the literature to mesure and analyze price markup cyclical behavior.
We use a medium-scale DSGE Model with positive trend in
ation, in which aggregate
uctuations are driven
by neutral technology, MEI and monetary policy shocks and, where both price and wage markups vary. We
nd that when raising trend in
ation from 0 to 4 percent, wage markup is more important than price markup
in explaining the dynamics eects of shocks.
Business Economics - Unit-3 IMBA Syllabus Osmania UniversityBalasri Kamarapu
PRODUCTION AND COST CONCEPTS
Theory of production
Production function
Input output combination
Short run production laws
Law of diminishing marginal returns to scale
ISO-quant curves
ISO-cost curves
International Journal of Research in Engineering and Science is an open access peer-reviewed international forum for scientists involved in research to publish quality and refereed papers. Papers reporting original research or experimentally proved review work are welcome. Papers for publication are selected through peer review to ensure originality, relevance, and readability.
The reference of this book is from Dominick Salvatore's Managerial Economics. It is in chapter 8 with the following topic: Linear Programming, Production process, Feasible region, Optimal solution, Objective function, Inequality constraints, Nonnegativity constraints, Decision variables, Binding constraints, Slack variable, Simplex method, Primal problem, Dual problem, Shadow price, Duality theorem and Logistic management.
Banque de France's Workshop on Granularity: Basile Grassi's slides, June 2016 Soledad Zignago
Large Firm Dynamics and the Business Cycle, slides by Basile Grassi (University of Oxford & Nuffield College), joint work with Vasco Carvalho (University of Cambridge & CREI, University Pompeu Fabra GSE & CEPR), at the Banque de France and Sciences Po joint workshop on Granularity of Macroeconomics Fluctuations, 24 June 2016. Slides of presentations & discussions are available online: https://www.banque-france.fr/en/economics-statistics/research/seminars-and-symposiums/research-workshop-on-the-granularity-of-macroeconomic-fluctuations-where-do-we-stand.html
Dierent methods have been used in the literature to mesure and analyze price markup cyclical behavior.
We use a medium-scale DSGE Model with positive trend in
ation, in which aggregate
uctuations are driven
by neutral technology, MEI and monetary policy shocks and, where both price and wage markups vary. We
nd that when raising trend in
ation from 0 to 4 percent, wage markup is more important than price markup
in explaining the dynamics eects of shocks.
Business Economics - Unit-3 IMBA Syllabus Osmania UniversityBalasri Kamarapu
PRODUCTION AND COST CONCEPTS
Theory of production
Production function
Input output combination
Short run production laws
Law of diminishing marginal returns to scale
ISO-quant curves
ISO-cost curves
Malmquist Total Factor Productivity Index for Modeling Dairy SectorARNAB ROY
Productivity growth in agriculture sector is considered important to the development process, allowing countries to produce more food at lower cost, improve nutrition and welfare, and release resources to other sectors. The Total Factor Productivity (TFP) growth, traditionally calculated as the ratio of total output to the weighted sum of inputs, is quite often interpreted as a shift of the production function.TFP represents the increase in total production which is in excess of the increase that results from increase in inputs. It results from intangible factors such as technological change, education, research and development, synergies, etc. the Malmquist index, a data envelopment analysis-type nonparametric technique, to decompose productivity growth into technical efficiency and technological change for Indian dairy sector. The results indicate that the increase in dairy productivity is mainly attributed to the increase in technical change, and the efficiency gain found is largely the result of improvements in scale efficiency.
The dangers of policy experiments Initial beliefs under adaptive learningGRAPE
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dynamics under adaptive learning. We first illustrate how prior beliefs determine learning dynamics
and the evolution of endogenous variables in a small DSGE model with credit-constrained agents,
in which rational expectations are replaced by constant-gain adaptive learning. We then examine
how discretionary experimenting with new macroeconomic policies is affected by expectations that
agents have in relation to these policies. More specifically, we show that a newly introduced macroprudential policy that aims at making leverage counter-cyclical can lead to substantial increase in
fluctuations under learning, when the economy is hit by financial shocks, if beliefs reflect imperfect
information about the policy experiment. This is in the stark contrast to the effects of such policy
under rational expectations.
Expert workshop on the creation and uses of combined environmental and economic performance datasets at the micro-level - 10-11 July 2018 - OECD, Paris
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
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Revisiting gender board diversity and firm performanceGRAPE
Cel: oszacować wpływ inkluzywności władz spółek na ich wyniki.
Co wiemy?
• Większość firm nie ma równosci płci w organach (ILO, 2015)
• Większość firm nie ma w ogóle kobiet we władzach
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(Gender) tone at the top: the effect of board diversity on gender inequalityGRAPE
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Gender board diversity spillovers and the public eyeGRAPE
A range of policy recommendations mandating gender board quotas is based on the idea that "women help women". We analyze potential gender diversity spillovers from supervisory to top managerial positions over three decades in Europe. Contrary to previous studies which worked with stock listed firms or were region locked, we use a large data base of roughly 2 000 000 firms. We find evidence that women do not help women in corporate Europe, unless the firm is stock listed. Only within public firms, going from no woman to at least one woman on supervisory position is associated with a 10-15% higher probability of appointing at least one woman to the executive position. This pattern aligns with various managerial theories, suggesting that external visibility influences corporate gender diversity practices. The study implies that diversity policies, while impactful in public firms, have limited
effectiveness in promoting gender diversity in corporate Europe.
Tone at the top: the effects of gender board diversity on gender wage inequal...GRAPE
We address the gender wage gap in Europe, focusing on the impact of female representation in executive and non-executive boards. We use a novel dataset to identify gender board diversity across European firms, which covers a comprehensive sample of private firms in addition to publicly listed ones. Our study spans three waves of the Structure of Earnings Survey, covering 26 countries and multiple industries. Despite low prevalence of female representation and the complex nature of gender wage inequality, our findings reveal a robust causal link: increased gender diversity significantly decreases the adjusted gender wage gap. We also demonstrate that to meaningfully impact gender wage gaps, the presence of a single female representative in leadership is insufficient.
Gender board diversity spillovers and the public eyeGRAPE
A range of policy recommendations mandating gender board quotas is based on the idea that "women help women". We analyze potential gender diversity spillovers from supervisory to top managerial positions over three decades in Europe. Contrary to previous studies which worked with stock listed firms or were region locked, we use a large data base of roughly 2 000 000 firms. We find evidence that women do not help women in corporate Europe, unless the firm is stock listed. Only within public firms, going from no woman to at least one woman on supervisory position is associated with a 10-15\% higher probability of appointing at least one woman to the executive position. This pattern aligns with the Public Eye Managerial Theory, suggesting that external visibility influences corporate gender diversity practices. The study implies that diversity policies, while impactful in public firms, have limited effectiveness in promoting gender diversity in corporate Europe.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large New Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economies, we use this model to provide comparative statics across past and contemporaneous age structures of the working population. Thus, we quantify the extent to which the response of labor markets to adverse TFP shocks and monetary policy shocks becomes muted with the aging of the working population. Our findings have important policy implications for European labor markets and beyond. For example, the working population is expected to further age in Europe, whereas the share of young workers will remain robust in the US. Our results suggest a partial reversal of the European-US unemployment puzzle. Furthermore, with the aging population, lowering inflation volatility is less costly in terms of higher unemployment volatility. It suggests that optimal monetary policy should be more hawkish in the older society.
Evidence concerning inequality in ability to realize aspirations is prevalent: overall, in specialized segments of the labor market, in self-employment and high-aspirations environments. Empirical literature and public debate are full of case studies and comprehensive empirical studies documenting the paramount gap between successful individuals (typically ethnic majority men) and those who are less likely to “make it” (typically ethnic minority and women). So far the drivers of these disparities and their consequences have been studied much less intensively, due to methodological constraints and shortage of appropriate data. This project proposes significant innovations to overcome both types of barriers and push the frontier of the research agenda on equality in reaching aspirations.
Overall, project is interdisciplinary, combining four fields: management, economics, quantitative methods and psychology. An important feature of this project is that it offers a diversified methodological perspective, combining applied microeconometrics, as well as experimental methods.
Toxic effects of heavy metals : Lead and Arsenicsanjana502982
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What are greenhouse gasses how they affect the earth and its environment what is the future of the environment and earth how the weather and the climate effects.
Salas, V. (2024) "John of St. Thomas (Poinsot) on the Science of Sacred Theol...Studia Poinsotiana
I Introduction
II Subalternation and Theology
III Theology and Dogmatic Declarations
IV The Mixed Principles of Theology
V Virtual Revelation: The Unity of Theology
VI Theology as a Natural Science
VII Theology’s Certitude
VIII Conclusion
Notes
Bibliography
All the contents are fully attributable to the author, Doctor Victor Salas. Should you wish to get this text republished, get in touch with the author or the editorial committee of the Studia Poinsotiana. Insofar as possible, we will be happy to broker your contact.
The ability to recreate computational results with minimal effort and actionable metrics provides a solid foundation for scientific research and software development. When people can replicate an analysis at the touch of a button using open-source software, open data, and methods to assess and compare proposals, it significantly eases verification of results, engagement with a diverse range of contributors, and progress. However, we have yet to fully achieve this; there are still many sociotechnical frictions.
Inspired by David Donoho's vision, this talk aims to revisit the three crucial pillars of frictionless reproducibility (data sharing, code sharing, and competitive challenges) with the perspective of deep software variability.
Our observation is that multiple layers — hardware, operating systems, third-party libraries, software versions, input data, compile-time options, and parameters — are subject to variability that exacerbates frictions but is also essential for achieving robust, generalizable results and fostering innovation. I will first review the literature, providing evidence of how the complex variability interactions across these layers affect qualitative and quantitative software properties, thereby complicating the reproduction and replication of scientific studies in various fields.
I will then present some software engineering and AI techniques that can support the strategic exploration of variability spaces. These include the use of abstractions and models (e.g., feature models), sampling strategies (e.g., uniform, random), cost-effective measurements (e.g., incremental build of software configurations), and dimensionality reduction methods (e.g., transfer learning, feature selection, software debloating).
I will finally argue that deep variability is both the problem and solution of frictionless reproducibility, calling the software science community to develop new methods and tools to manage variability and foster reproducibility in software systems.
Exposé invité Journées Nationales du GDR GPL 2024
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spanning 0.4−0.9µm) and novel JWST images with 14 filters spanning 0.8−5µm, including 7 mediumband filters, and reaching total exposure times of up to 46 hours per filter. We combine all our data
at > 2.3µm to construct an ultradeep image, reaching as deep as ≈ 31.4 AB mag in the stack and
30.3-31.0 AB mag (5σ, r = 0.1” circular aperture) in individual filters. We measure photometric
redshifts and use robust selection criteria to identify a sample of eight galaxy candidates at redshifts
z = 11.5 − 15. These objects show compact half-light radii of R1/2 ∼ 50 − 200pc, stellar masses of
M⋆ ∼ 107−108M⊙, and star-formation rates of SFR ∼ 0.1−1 M⊙ yr−1
. Our search finds no candidates
at 15 < z < 20, placing upper limits at these redshifts. We develop a forward modeling approach to
infer the properties of the evolving luminosity function without binning in redshift or luminosity that
marginalizes over the photometric redshift uncertainty of our candidate galaxies and incorporates the
impact of non-detections. We find a z = 12 luminosity function in good agreement with prior results,
and that the luminosity function normalization and UV luminosity density decline by a factor of ∼ 2.5
from z = 12 to z = 14. We discuss the possible implications of our results in the context of theoretical
models for evolution of the dark matter halo mass function.
Phenomics assisted breeding in crop improvementIshaGoswami9
As the population is increasing and will reach about 9 billion upto 2050. Also due to climate change, it is difficult to meet the food requirement of such a large population. Facing the challenges presented by resource shortages, climate
change, and increasing global population, crop yield and quality need to be improved in a sustainable way over the coming decades. Genetic improvement by breeding is the best way to increase crop productivity. With the rapid progression of functional
genomics, an increasing number of crop genomes have been sequenced and dozens of genes influencing key agronomic traits have been identified. However, current genome sequence information has not been adequately exploited for understanding
the complex characteristics of multiple gene, owing to a lack of crop phenotypic data. Efficient, automatic, and accurate technologies and platforms that can capture phenotypic data that can
be linked to genomics information for crop improvement at all growth stages have become as important as genotyping. Thus,
high-throughput phenotyping has become the major bottleneck restricting crop breeding. Plant phenomics has been defined as the high-throughput, accurate acquisition and analysis of multi-dimensional phenotypes
during crop growing stages at the organism level, including the cell, tissue, organ, individual plant, plot, and field levels. With the rapid development of novel sensors, imaging technology,
and analysis methods, numerous infrastructure platforms have been developed for phenotyping.
Professional air quality monitoring systems provide immediate, on-site data for analysis, compliance, and decision-making.
Monitor common gases, weather parameters, particulates.
This presentation explores a brief idea about the structural and functional attributes of nucleotides, the structure and function of genetic materials along with the impact of UV rays and pH upon them.
A Framework for Analyzing the Impact of Business Cycles on Endogenous Growth
1. Introduction Model Results Conclusions
A Framework for Analyzing the Impact
of Business Cycles on Endogenous Growth
Marcin Bielecki
University of Warsaw
Faculty of Economic Sciences
PhD Students’ Seminar
March 16, 2015
2. Introduction Model Results Conclusions
Motivation
Business cycles literature typically employs a variant of the
so-called neoclassical growth model, where the trend growth is
assumed to be exogenous and constant over time
Endogenous growth literature typically abstracts from the
short-term fluctuations and focuses on the balanced growth
path results or the transition dynamics
My research program aims to fill the gap in the literature by
employing a single framework to analyze both business cycle
and growth phenomena and seek links between the two
3. Introduction Model Results Conclusions
Literature review
The seminal paper of Aghion and Howitt (1992) rekindled
interest in Schumpeterian-type endogenous growth theory
Klette and Kortum (JPE 2004) develop a very rich and
powerful model of product innovation performed by
heterogeneous firms
Acemoglu et al. (NBER 2013) provide further refinements by
including firms’ heterogeneity with respect to their innovative
capacity
Bilbiie et al. (JPE 2012) use the closed economy Melitz model
to relate endogenous firm entry decisions to the business cycle
4. Introduction Model Results Conclusions
Households
Standard CRRA utility function
Ut =
∞
τ=0
βτ C1−θ
t+τ − 1
1 − θ
(1)
No storage technology – the entire output is consumed
Ct = Yt (2)
Constant inelastic labor supply with a fraction s of workers
supplying skilled labor Ls and a fraction 1 − s supplying
unskilled labor Lu
Lt = L (3)
Ls
t = sL (4)
Lu
t = (1 − s) L (5)
5. Introduction Model Results Conclusions
Final Goods Producer
A perfectly competitive representative firm producing final
goods output from mass Mt of intermediate goods yit,
where σ denotes the elasticity of substitution between varieties
Yt =
Mt
0
y
σ−1
σ
it di
σ
σ−1
(6)
There exists an associated price index P of the final good,
where pit denotes the price of i-th variety
Pt =
Mt
0
p1−σ
it di
1
1−σ
(7)
The resulting demand function for an intermediate good
yit = YtPσ
t p−σ
it (8)
6. Introduction Model Results Conclusions
Intermediate Goods Producers
There exists a mass Mt ∈ (0, 1) of active intermediate goods
producing establishments
Each period an establishment hires f units of skilled labor and
gains access to the following production technology
yit = ztqit it (9)
where zt is an aggregate productivity shock,
qit is an establishment-specific quality parameter,
and it denotes units of employed unskilled labor
An establishment’s (nominal) marginal cost is proportional to
the (nominal) unskilled wage wt and inversely proportional to
zt and qit, and the optimal pricing rule is in fact a constant
mark-up applied to the marginal cost
pit =
σ
σ − 1
mark-up
wt
ztqit
marginal cost
(10)
7. Introduction Model Results Conclusions
Intermediate Goods Producers
An establishment’s operating profit can be expressed as follows
πo
it =
(σ − 1)σ−1
σσ
YtPσ
t zσ−1
t w1−σ
t qσ−1
it − ws
t f (11)
where ws
t is the skilled labor wage
Establishments can improve their goods’ quality by investing
in R&D activities. The resulting improvements are best
thought of as process (rather than product) innovations
R&D costs are expressed as follows
cR&D (ws
t , xit) = ws
t · x (qit, Qt, αit) (12)
where xit denotes the demand for R&D capable labor, which
depends on the establishment’s quality, the aggregate quality
index of all intermediates Qt and the success probability αit
8. Introduction Model Results Conclusions
Success probability function
R&D intensity x
0
1
Successprobabilityα
9. Introduction Model Results Conclusions
R&D Decision
The success probability αit is a function of R&D productivity
parameter a and the adjusted R&D intensity
xit
(qit/Qt)σ−1
(similar approach to Ericson and Pakes (RES 1995))
α (xit, qit, Qt) =
a xit
(qit/Qt)σ−1
1 + a xit
(qit/Qt)σ−1
(13)
The idea behind the adjustment is that if an establishment is
significantly more productive than the others, it has harder
time generating new ideas, whereas the ones that are less
productive can imitate the successful establishments
At this point I introduce a new variable φit ≡ (qit/Qt)σ−1
, so
that
α (xit, φit) =
axit/φit
1 + axit/φit
(14)
10. Introduction Model Results Conclusions
R&D Decision
The success probability function can be inverted to yield the
demand function for R&D capable labor
α (xit, φit) =
axit/φit
1 + axit/φit
(15)
x (φit, αit) =
1
a
αit
1 − αit
φit (16)
The operating profit of an establishment can be rewritten
using the relative productivity variable φit as follows
πo
it =
PtYt
σMt
φit − ws
t f (17)
The total profit equation is a linear function in φit
πit =
PtYt
σMt
φit − ws
t f
operating profit
−ws
t
1
a
αit
1 − αit
φit (18)
11. Introduction Model Results Conclusions
Value Function
The profit function
πit =
PtYt
σMt
−
ws
t
a
αit
1 − αit
φit − ws
t f (19)
The value function
Vt (φit) = max
αit∈[0,1]
πit (φit)
Pt
+ max {0, Et [Λt,t+1Vt+1 (φi,t+1|φit, αit)]}
(20)
where Λt,t+1 = β Yt+1
Yt
−θ
(1 − δ) is the stochastic discount factor
with δ denoting the incumbent exit probability and
φi,t+1 =
ιφit
ηt
with probability αit
φit
ηt
with probability 1 − αit
(21)
where ι is the incremental innovation step size and ηt is the rate of
growth of the aggregate quality index
12. Introduction Model Results Conclusions
Value Function
I drop the subscript i since an establishment’s solution
depends only on its relative quality variable φ. Also, I use
the notation to denote the t + 1 period’s variables
V (φ, Y, M, ωs
) = max
α∈[0,1]
Y
1
σM
−
ωs
a
α
1 − α
φ − ωs
f (22)
+ max 0, E β (Y /Y )
−θ
(1 − δ) V φ , Y , M , (ωs
) |φ, Y, M, ωs
, α
where ωs
≡ ws
/Y
13. Introduction Model Results Conclusions
Balanced Growth Path
Along the BGP the value function is linear (γ ≡ Y /Y )
V (φ) = max
α∈[0,1]
Y
1
σM
−
ωs
a
α
1 − α
φ − ωs
f (23)
+ max
0, E
βγ1−θ
(1 − δ)
ϑ
V φ |φ, α
14. Introduction Model Results Conclusions
R&D Intensity (Partial Equilibrium)
α∗
=
a
σMωs − 1−ϑ
ϑ
η
ι−η
1 + a
σMωs
(24)
R&D intensity α∗ is the larger:
the lower is the number of active establishments M
the higher is the innovative step size ι
the closer to 1 is the discounting factor ϑ
the lower is the high skilled wage relative to output ωs
the higher is the unit R&D productivity a
the lower is the aggregate quality index growth rate η
(good for numerical stability)
15. Introduction Model Results Conclusions
Entry and General Equilibrium
A prospective entrant solves the following problem (the R&D
cost function is the same as for the φ = 1 incumbent)
VE = max
αE∈[0,1]
αEβγ1−θ
EV − ws
fE +
1
aE
αE
1 − αE
(25)
Free Entry Condition ensures that VE = 0
A successful entrant has a (1 − δexo) M chance of replacing
an incumbent and 1 − (1 − δexo) M chance of starting a new
product line, with δexo being the ‘pure’ exogenous exit
probability. The resulting incumbent survival probability is
(1 − δ) = (1 − δexo)
1 − M
1 − (1 − δexo) M
(26)
Constant Mass of Firms
Labor Market Clears
16. Introduction Model Results Conclusions
General Equilibrium – Numerical Solution Procedure
1 Compute αE
2 Guess M and ωs
3 Compute δ
4 Jointly determine α and η in a loop
5 Update M and ωs and iterate steps 2-5 until convergence
17. Introduction Model Results Conclusions
Entry Costs and Fixed Costs vs Growth
Entry cost fE
0.0
0.5
1.0
1.5
2.0
Fixed
costf1.0
1.2
1.4
1.6
1.8
2.0
2.2
Growthrateγ+1.002
0.001
0.002
0.003
0.004
0.005
18. Introduction Model Results Conclusions
Entry Costs and Fixed Costs vs Active Establishments
Entry cost fE
0.0
0.5
1.0
1.5
2.0
Fixed
costf
1.0
1.2
1.4
1.6
1.8
2.0
2.2
MassofactiveproductlinesM
0.04
0.05
0.06
0.07
0.08
0.09
0.10
19. Introduction Model Results Conclusions
Entry Costs and Fixed Costs vs Welfare
Entry cost fE
0.0
0.5
1.0
1.5
2.0
Fixed
costf1.0
1.2
1.4
1.6
1.8
2.0
2.2
UtilityU
−0.612
−0.610
−0.608
−0.606
−0.604
−0.602
−0.600
20. Introduction Model Results Conclusions
Growth and Business Cycles (Work In Progress)
V (φ, Y, M, ωs
) = max
α∈[0,1]
Y
1
σM
−
ωs
a
α
1 − α
φ − ωs
f
+ max 0, E β (Y /Y )
−θ
(1 − δ) V φ , Y , M , (ωs
) |φ, Y, M, ωs
, α
Y = M
1
σ−1 ZQL
ln Z = ρ ln Z + εZ
Along the business cycle, a change in Y can be caused by change in
M, Q or Z. Thus, if changes in Z influence M or Q, then large
variation in Y may not require large variation in Z if the
amplification mechanism is strong enough.
21. Introduction Model Results Conclusions
Preview of Future Results
Impulse response functions for output under the RBC model (red)
and this model (blue)
0 5 10 15 20 25 30 35 40
-0.5
0
0.5
1
22. Introduction Model Results Conclusions
Preview of Future Results
The persistence and amplitude of exogenous shocks has an
impact on the average growth rate of an economy
Entry costs have a decisive role in the behavior of entry along
the business cycle
Fixed costs impact mainly Balanced Growth Path behavior
Hypothesis: given the nature of the exogenous shocks, there
is a welfare-optimal combination of f and fE