scholarly journals Endogenous Technology Adoption and R&D as Sources of Business Cycle Persistence

2019 ◽  
Vol 11 (3) ◽  
pp. 67-110 ◽  
Author(s):  
Diego Anzoategui ◽  
Diego Comin ◽  
Mark Gertler ◽  
Joseba Martinez
Keyword(s):  
Technology Adoption ◽  
Business Cycle ◽  
Great Recession ◽  
Financial Crises ◽  
Significant Fraction ◽  
Significant Part ◽  
The Great Recession ◽  
Insight Into ◽  
Endogenous Technology

We examine the hypothesis that the slowdown in productivity following the Great Recession was in significant part an endogenous response to the contraction in demand that induced the downturn. We motivate, develop, and estimate a model with an endogenous TFP mechanism that allows for costly development and adoption of technologies. Our main finding is that a significant fraction of the post-Great Recession fall in productivity was an endogenous phenomenon, suggesting that demand factors played an important role in the postcrisis slowdown of capacity growth. More generally, we provide insight into why recoveries from financial crises may be so slow. (JEL E23, E24, E32, E44, G01)

Industrial Effects on Male and Female Unemployment Over the Great Recession: An Interurban Analysis

2018 ◽  
Vol 64 (1) ◽  
pp. 19-30
Author(s):  
Thomas Van Gent ◽  
Farida C. Khan ◽  
Norman Cloutier
Keyword(s):  
Business Cycle ◽  
Gender Gap ◽  
Great Recession ◽  
Cross Sectional ◽  
Male And Female ◽  
The Great Recession ◽  
Original Contribution ◽  
Insight Into ◽  
Jel Classifications

This study looks at the determinants of the interurban variation in male and female unemployment in 2009, a recession year and 2014, a recovery year. We hypothesize that the variation in male and female unemployment is informed by different factors or react to these determinants differently. Industrial shifts in employment across the nation are examined, allowing us to gain insight into the unemployment gender gap and its evolution in recent years, especially in the recent business cycle that includes the Great Recession. The use of cross-sectional data makes an original contribution by analyzing how interurban effects might have impacted recent unemployment levels. JEL Classifications: R10, R64, J16

scholarly journals Autonomes Fahren statt Stop and Go: Vorschläge zur effektiven Gestaltung der deutschen Kurzarbeit

2019 ◽  
Vol 68 (3) ◽  
pp. 252-260
Author(s):  
Almut Balleer ◽  
Britta Gehrke ◽  
Brigitte Hochmuth ◽  
Christian Merkl
Keyword(s):  
Labor Market ◽  
Business Cycle ◽  
Great Recession ◽  
Timely Manner ◽  
Rule Based ◽  
The Great Recession ◽  
Stop And Go ◽  
Time Work ◽  
The Business Cycle ◽  
Short Time

Abstract This article argues that short-time work stabilized employment in Germany substantially during the Great Recession in 2008/09. The labor market instrument acted in timely manner, as it was used in a rule-based fashion. In addition, discretionary extensions were effective due to their interaction with the business cycle. To ensure that short-time work will be effective in the future, this article proposes an automatic facilitation of the access to short-time work in severe recessions. This reduces the likelihood of a too extensive use at the wrong point in time as well as structural instead of cyclical interventions.

scholarly journals ENTREPRENEURS, FINANCIERS, AND BOOM–BUST CYCLES

2016 ◽  
Vol 21 (3) ◽  
pp. 785-816 ◽  
Author(s):  
Takuma Kunieda ◽  
Akihisa Shibata
Keyword(s):  
Great Recession ◽  
Productivity Growth ◽  
Financial Crises ◽  
High Growth ◽  
Factor Productivity ◽  
Business Cycle Theory ◽  
The Great Recession ◽  
Dynamic General Equilibrium Model ◽  
Parameter Values ◽  
Financial Market Imperfections

In this paper, a dynamic general equilibrium model with infinitely lived entrepreneurs and financiers is developed to investigate a possible mechanism that explains business cycles and financial crises. The highest growth rate is achievable only if financiers coexist with entrepreneurs, given a certain extent of financial market imperfections. However, if financiers coexist with entrepreneurs, the economy is highly likely to face a financial crisis at certain parameter values. These two-sided implications of the coexistence of entrepreneurs and financiers explain why both instability and high growth are frequently observed in modern economies. Furthermore, our model can obtain countercyclical movements in total factor productivity growth that cannot be explained by the standard real business cycle theory but were observed in the Great Recession of 2007–2008.

scholarly journals ADAM SMITH’S ESSENTIALS: ON TRUST, FAITH, AND FREE MARKETS

2011 ◽  
Vol 33 (2) ◽  
pp. 249-267 ◽  
Author(s):  
JERRY EVENSKY
Keyword(s):  
Great Recession ◽  
State Power ◽  
Central Theme ◽  
Market System ◽  
Free Markets ◽  
Classic Case ◽  
The Great Recession ◽  
Insight Into ◽  
Looking Back

When trust is shaken, individuals pull back and the market system contracts. Where trust grows, individual energy and creativity are unleashed and the system grows. In Adam Smith’s vision of humankind’s progress, trust is the central theme.The Great Recession represents a classic case of a crisis of trust. Looking back to the work of Smith offers insight into the role of citizens and the State in creating an fruitful market environment based on trust, and the challenge of this process, given the human frailty of individuals (unfortunately, we are not angels) and the potential for State power to be captured and abused.

scholarly journals Family-related Disparities in College Enrollment across the Great Recession

2018 ◽  
Vol 61 (5) ◽  
pp. 689-710 ◽  
Author(s):  
Elizabeth Cozzolino ◽  
Chelsea Smith ◽  
Robert L. Crosnoe
Keyword(s):  
Great Recession ◽  
College Enrollment ◽  
General Trend ◽  
Longitudinal Survey ◽  
Economic Conditions ◽  
Family Stability ◽  
The Great Recession ◽  
Economic Volatility ◽  
Early Family ◽  
Insight Into

The economic crisis of the Great Recession in the late 2000s had implications for the intergenerational transmission of inequality within families. Studying patterns of college enrollment across the Great Recession among U.S. youth from diverse family contexts provides insight into how economic volatility can either compound or undercut the advantages that some parents can give their children. Although college enrollment among 18- to 21-year-olds did not decline during or after the Great Recession, analyses of the National Longitudinal Survey of Youth 1979–Young Adult cohort revealed that this general trend subsumed variability by family history, local economic conditions, and age. Histories of family stability and sufficiency were associated with higher odds of college enrollment over time and across age, but this advantage was largest during the Recession in high-unemployment communities. These results illuminate how life course consequences of early family life can fluctuate with volatility and opportunity in the broader economy.

scholarly journals Hall of Mirrors: The Great Depression, the Great Recession, and the Uses—and Misuses—of History

2015 ◽  
Vol 89 (3) ◽  
pp. 557-569 ◽  
Author(s):  
Per H. Hansen
Keyword(s):  
United States ◽  
Great Depression ◽  
Great Recession ◽  
Financial Crises ◽  
The United States ◽  
Comparative Approach ◽  
The Great Recession ◽  
The Great Depression ◽  
Successful Search ◽  
Similarities And Differences

Barry Eichengreen's new bookHall of Mirrorsis a detailed, excellent, and somewhat pessimistic comparison of the two most serious financial crises ever—their causes, development, and consequences. Readers well versed in the comprehensive literature on the Great Depression and the Great Recession in the United States and Europe will not find much information inHall of Mirrorsthat is completely new, but most others will. Whatisnew is the comparative approach: the detailed and analytically successful search for similarities and differences between the Great Depression and the Great Recession.

Consumption, unemployment and the Great Recession

2016 ◽  
Vol 37 (4) ◽  
pp. 724-743
Author(s):  
Joaquín Alegre ◽  
Llorenç Pou
Keyword(s):  
Business Cycle ◽  
Great Recession ◽  
Job Loss ◽  
Consumption Smoothing ◽  
Content Type ◽  
The Great Recession ◽  
Household Members ◽  
The Business Cycle ◽  
Unemployment Spells ◽  
Unemployment Persistence

Purpose – The purpose of this paper is to test whether households with members that experience job loss shocks are able to protect their previous level of consumption. The paper also tests whether consumption protection is affected when spells persist through time. Design/methodology/approach – The paper estimates an intertemporal consumption model, where households try to smooth their marginal utility over time. For that purpose it analyses Spanish household budget surveys that span a long period, 1999-2012, including the Great Recession. Unlike most consumption datasets, this microdata is designed as a panel and provides detailed information for all consumption categories as well as household members’ labour status. Findings – The paper finds that consumption smoothing is dependent on the household member facing the unemployment transition. In particular, only main breadwinner’s unemployment transitions affects consumption smoothing. It also shows that the consumption drop persists beyond the period of the job loss for ongoing spells, although it follows a decreasing pattern. Finally, the estimation results are stable over the business cycle. Practical implications – The results suggest that Spanish households are not capable of fully insuring against main breadwinner’s unemployment shocks. Further, the results show that this effect remains up to two years for ongoing unemployment spells. Thus these results highlight a welfare loss by Spanish households with unemployed members. Originality/value – The paper extends the usual analysis of job loss shocks by the main breadwinner to include the cases of both the spouse and the rest of household members, who tend to account for most unemployment. Further, it tests for unemployment persistence. Finally, it checks the sensitivity of the results to the business cycle, including the Great Recession.

scholarly journals Capital Adequacy and Liquidity of Global Financial Institutions: A Study of Reforms after the Great Recession

2019 ◽  
Vol 5 (4) ◽  
pp. p419
Author(s):  
Mehdi Monadjemi ◽  
John Lodewijks
Keyword(s):  
Financial Institutions ◽  
Great Recession ◽  
Federal Reserve ◽  
Financial Crises ◽  
Central Banks ◽  
Capital Adequacy ◽  
Federal Reserve Bank ◽  
The Great Recession ◽  
The Great Depression ◽  
Reserve Bank

The global financial crises of 2007-2009 was followed by the Great Recession which was the worst since the Great Depression of 1930s. The crises left significant adverse effects on global growth and employment. Policymakers of affected countries responded differently to the outcomes of these crises. The central banks, including US Federal Reserve Bank and Bank of England, provided ample liquidity for the financial institutions and lowered the interest rate to near zero. The policymakers and regulators realized that capital inadequacy and insufficient liquidity of financial institutions were the main problems preventing the financial firms to protect themselves against major financial crises. In addition, lack of guidelines for compensations encourages managers to take the extra risks. The US Federal Reserve Bank took the initiative, in cooperation with international central banks to introduce rules and regulations to safeguard the financial systems against another major crisis. It is not guaranteed that another episode of financial instability will not happen again. However, with existing regulations on financial institutions in force, the severity of the crises on the whole global financial system may possibly become weaker. This is a conjecture we explore here.

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