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• W4254537869 endingPage "1956" @default.
• W4254537869 startingPage "1939" @default.
• W4254537869 abstract "We demonstrate that aggregate employment and consumption can increase without a corresponding movement in productivity in a model with heterogeneous agents where the only aggregate disturbance is a productivity shock. The interaction between incomplete capital markets and indivisible labor results in a low employment-productivity correlation and creates a time-varying wedge between the marginal rate of substitution (for commodity consumption and hours) and productivity. Our results caution against viewing the measured wedge as an inefficiency due to a failure of labor-market clearing or as a fundamental driving force behind business cycles. (JEL D31, E32, J22, J24, J31)" @default.
• W4254537869 created "2022-05-12" @default.
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• W4254537869 date "2007-12-01" @default.
• W4254537869 modified "2023-10-06" @default.
• W4254537869 title "Heterogeneity and Aggregation: Implications for Labor-Market Fluctuations" @default.
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• W4254537869 doi "https://doi.org/10.1257/aer.97.5.1939" @default.
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