The American Economic Review, Volume 97

agents aggregate allow analysis assume assumption average behavior business cycles capital changes choice choose coefficient compared condition consumer consumption contracts correlation cost countries depends discussed distribution durables Economic effect empirical equal equation equilibrium estimated example exchange expected Figure final firms fixed function gains given growth higher households implies important income increase individuals inflation inventory investment Journal labor less losses lower matching mean measure monetary nodes Note observed offer output pairs parameters patients payments percent period positive preferences present probability procyclical production random region relative reported requires response Review risk risk aversion sample shocks side specification standard structure suggests Table theory tion University utility variables vouchers wage workers