A productivity innovation reduces labor share at impact, making it countercyclical; it
subsequently produces a long-lasting increase that peaks five years later at a level larger in …

This essay reviews the family of models that seek to provide aggregate risk based
explanations for the empirically observed equity premium. Theories based on non-expected …

Output, wages, and dividends feature term structures of variance ratios that are respectively
flat, increasing, and decreasing. Income insurance from shareholders to workers explains …

We introduce permanently shifting income shares into a growth model with workers and
capital owners. The model exactly replicates the US time paths of the top quintile income …

This paper develops a production-based asset pricing model with two types of agents and
concentrated ownership of physical capital. A temporary but persistent “distribution shock” …

We analyze financial risk premiums and real economic dynamics in a DSGE model with
three types of agents—shareholders, bondholders and workers—that differ in participation in …

We argue that social and political risk causes significant aggregate fluctuations by changing
workers' bargaining power. Using a Bayesian proxy-VAR estimated with US data, we show …

The introduction of an endogenous labor decision represents a challenge for models that
seek to jointly explain asset pricing and business cycle facts. This paper shows that several …

Recent studies have found unmeasured intangible capital to be large and important. In this
paper we observe that by nature intangible capital is also very different from physical capital …

In spatial econometrics literature estimation and inference are carried out assuming that the
matrix of spatial or network connections has uniformly bounded absolute column sums in the …