Search Results

Showing results 1 to 3 of approximately 3.

(refine search)
SORT BY: PREVIOUS / NEXT
Keywords:adjustment costs 

Discussion Paper
The Investment Cost of the U.S.-China Trade War

Starting in early 2018, the U.S. government imposed tariffs on over $300 billion of U.S. imports from China, increasing the average tariff rate from 2.7 percent to 17.5 percent. Much of the escalation in tariffs occurred in the second and third quarters of 2019. In response, the Chinese government retaliated, increasing the average tariff applied on U.S. exports from 5.7 percent to 20.4 percent. Our new study finds that the trade war reduced U.S. investment growth by 0.3 percentage points by the end of 2019, and is expected to shave another 1.6 percentage points off of investment growth by ...
Liberty Street Economics , Paper 20200528

Working Paper
The Aggregate Effects of Labor Market Frictions

Labor market frictions are able to induce sluggish aggregate employment dynamics. However, these frictions have strong implications for the source of this propagation: They distort the path of aggregate employment by impeding the flow of labor across firms. For a canonical class of frictions, we show how observable measures of such flows can be used to assess the effect of frictions on aggregate employment dynamics. Application of this approach to establishment microdata for the United States reveals that the empirical flow of labor across firms deviates markedly from the predictions of ...
Working Papers , Paper 17-40

Working Paper
Persistence of Shocks and the Reallocation of Labor

This paper proposes a theoretical and quantitative analysis of the reallocation of labor across firms in response to idiosyncratic shocks of different persistence. Creating and destroying jobs is costly and workers are paid a share of the value of the marginal worker. The model predicts that employment and labor costs react differently to transitory shocks and permanent shocks. Quantitative evaluation of the model on a panel of French firms shows the model?s performance. Modest adjustment costs are needed to reproduce observed job reallocation and inaction rates. Removing adjustment costs ...
Working Papers , Paper 2016-14

FILTER BY year

FILTER BY Series

FILTER BY Content Type

FILTER BY Author

Amiti, Mary 1 items

Elsby, Michael 1 items

Kong, Sang Hoon 1 items

Michaels, Ryan 1 items

Ratner, David 1 items

Roys, Nicolas 1 items

show more (2)

FILTER BY Jel Classification

E2 1 items

E24 1 items

E32 1 items

F00 1 items

F4 1 items

J21 1 items

show more (4)

FILTER BY Keywords

PREVIOUS / NEXT