Microeconomic Adjustment Hazards and Aggregate Dynamics
Author
dc.contributor.author
Caballero, Ricardo
Author
dc.contributor.author
Engel Goetz, Eduardo
Admission date
dc.date.accessioned
2017-11-07T20:31:46Z
Available date
dc.date.available
2017-11-07T20:31:46Z
Publication date
dc.date.issued
1993
Cita de ítem
dc.identifier.citation
Quarterly Journal of Economics Vol. 108, No. 2, pp. 359 - 383, Enero, 1993
es_ES
Identifier
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0033-5533
Identifier
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https://repositorio.uchile.cl/handle/2250/145509
Abstract
dc.description.abstract
The basic premise of this paper is that understanding aggregate dynamics
requires considering that agents are heterogeneous and that they do not adjust
continuously to the shocks they perceive. We provide a general characterization of
lumpy behavior at the microeconomic level in terms of an adjustment-hazard
function, which relates the probability that a unit adjusts to the deviation of its state
variable from its moving target. We characterize rich, cross-sectionally dependent
aggregate dynamics generated by nonconstant hazards. We present an example
based on U. S. manufacturing employment and job flows, and find that increasing-
hazard models outperform constant-hazard-partial-adjustment models in describ-
ing aggregate employment dynamics