Uncertainty appears to jump up after major shocks like the Cuban Missile crisis, the
assassination of JFK, the OPEC I oil‐price shock, and the 9/11 terrorist attacks. This paper …

We investigate the role of uncertainty in business cycles. First, we demonstrate that
microeconomic uncertainty rises sharply during recessions, including during the Great …

This paper studies the nature of capital adjustment at the plant level. We use an indirect
inference procedure to estimate the structural parameters of a rich specification of capital …

The present paper reviews recent research aimed at constructing a theoretical model of the
macroeconomy with five key elements:(i) it is based on rational decision making by …

Firm entry and exit amplify and propagate the effects of aggregate shocks, leading to greater
persistence and unconditional variation of aggregate quantities. Following a positive …

Germany experienced an even deeper fall in GDP in the Great Recession than the United
States, with little employment loss. Employers' reticence to hire in the preceding expansion …

We study the cyclical implications of credit market imperfections in a quantitative dynamic,
stochastic general equilibrium model wherein firms face persistent shocks to aggregate and …

We study a model of lumpy investment wherein establishments face persistent shocks to
common and plant‐specific productivity, and nonconvex adjustment costs lead them to …

In economic situations where action entails a fixed cost, inaction is the norm. Action is taken
infrequently, and adjustments are large when they occur. Interest in economic models that …

I study the aggregate implications of micro-level lumpy investment in a model consistent with
the empirical dynamics of the real interest rate. The elasticity of aggregate investment with …