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TABLE 1 - COST OF BUSINESS CYCLES : BASELINE ECONOMY Notes : Costs of business cycles are expressed as percentage of lifetime consumption ( equation ( 16 ) ) . The first and second columns assume displacement rates of Pu 0.05 and PH ...
TABLE 1 - COST OF BUSINESS CYCLES : BASELINE ECONOMY Notes : Costs of business cycles are expressed as percentage of lifetime consumption ( equation ( 16 ) ) . The first and second columns assume displacement rates of Pu 0.05 and PH ...
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Next , a logic similar to equation ( A9 ) establishes double sum . Use this to write the envelope condition from equation ( A5 ) as Ci - 1 i - 1 ( A10 ) jn ( i , j ; N ) = NEXT ( i.j – 1 ; N ) ( ) ( A7 ) rW / ( N ) = ( p – z ) S ( N ) ...
Next , a logic similar to equation ( A9 ) establishes double sum . Use this to write the envelope condition from equation ( A5 ) as Ci - 1 i - 1 ( A10 ) jn ( i , j ; N ) = NEXT ( i.j – 1 ; N ) ( ) ( A7 ) rW / ( N ) = ( p – z ) S ( N ) ...
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It could reflect systematic changes in the marginal productivity of labor ( y ) , in the shadow value of the availability constraint ( a ) , or in optimization errors.20 Similarly , equation ( 5 ) becomes ( 3 ) min W , Lin + Sir .
It could reflect systematic changes in the marginal productivity of labor ( y ) , in the shadow value of the availability constraint ( a ) , or in optimization errors.20 Similarly , equation ( 5 ) becomes ( 3 ) min W , Lin + Sir .
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activities additional agents aggregate allow analysis assume assumption average behavior business cycles capital changes choice choose coefficient compared condition consider consumer consumption contracts correlation cost countries decision depends discuss distribution durables Economic effect empirical equal equation equilibrium estimated evidence example exchange expected Figure final firms fixed function given growth higher households implies important income increase individuals inflation interest inventory investment Journal labor less losses lower matching mean measure monetary nodes Note observed output pairs parameters patients percent period positive preferences present probability procyclical production random relative reported requires response Review risk risk aversion sample shocks side specification standard structural suggests Table theory tion units University utility variables vouchers wage workers