• Publications
  • Influence
Theory, Measurement, and Calibration of Macroeconomic Models
Calibration has become a standard tool of macroeconomics. This paper extends and refines the calibration methodology along several important dimensions. First, accounting for home production isExpand
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Money and growth revisited
Results in Lucas (1987) suggest that if public policy can affect the growth rate of the economy, the welfare implications of alternative policies will be large. In this paper, a stochastic, dynamicExpand
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The Return to Capital and the Business Cycle
Real business cycle models have difficulty replicating the volatility of SP the most promising is one with higher risk aversion, which captures over 60 percent of the relative volatility in theExpand
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Measuring Labor's Share of Income
Recent Bureau of Labor Statistics (BLS) data show labor’s share of income at a historic low. This Policy Discussion Paper explores the BLS calculations with an eye to understanding the factorsExpand
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Worker search effort as an amplification mechanism
It is well known that the Diamond–Mortensen–Pissarides model exhibits a strong trade-off between cyclical unemployment fluctuations and the size of rents to employment. Introducing endogenous jobExpand
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Second-order approximation of dynamic models without the use of tensors
Several approaches to finding the second-order approximation to a dynamic model have been proposed recently. This paper differs from the existing literature in that it makes use of the Magnus andExpand
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Monetary Policy Regimes and Beliefs
Recent monetary history has been characterized by monetary authorities that appear to shift periodically between distinct policy regimes associated with higher or lower average rates of moneyExpand
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On the Cyclical Allocation of Risk
A real business cycle model with heterogeneous agents is parameterized, calibrated, and simulated to see if it can account for some stylized facts characterizing postwar U.S. business cycleExpand
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Home Production Meets Time to Build
An innovation in this paper is to introduce a time‐to‐build technology for the production of market capital into a model with home production. Our main finding is that the two anomalies that haveExpand
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Shirking, Unemployment and Aggregate Fluctuations
Empirically, real wages exhibit relatively little cyclical variation and a weak cyclical pattern. Early real business cycle (RBC) models predict, to the contrary, large, procyclical real wageExpand
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