Marcelo Veracierto

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We develop a theoretical model of firm dynamics and unemployment and characterize equilibria with tenure dependent separation taxes. The model is a version of the Lucas and Prescott island model with undirected search. Two equivalent decentralizations are considered: one with spot labor markets and one with long-term employment relations. We model "(More)
We construct a dynamic general equilibrium model of cities and use it to estimate the effect of local agglomeration on per capita consumption growth. Agglomeration affects growth through the density of economic activity: higher production per unit of land raises local productivity. Firms take productivity as given; produce using a technology that has(More)
We quantify the influence of migration and housing on urban population dynamics using a dynamic general equilibrium model of cities incorporating a new theory of migration motivated by patterns uncovered in a panel of US cities. Cities experience near random walk productivity shocks, yet population is slow to adjust. We show that measuring and modeling(More)
  • Simeon Alder, David Lagakos, Nber Lee Ohanian, Ufuk Akcigit, Marco Bassetto, Jesus Fernandez-Villaverde +23 others
  • 2015
No region of the United States fared worse over the postwar period than the " Rust Belt, " the heavy manufacturing region bordering the Great Lakes. This paper hypothesizes that the Rust Belt declined in large part due to a lack of competitive pressure in its labor and output markets. We formalize this thesis in a two-region dynamic general equilibrium(More)
Cities experience significant productivity shocks, but population is very slow to respond to these shocks. In light of Blanchard and Katz (1992)'s study showing that migration plays plays a major role equilibrating regional labor markets, could the slow response of population to productivity shocks help explain why employment remains so low in the US? Our(More)
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