Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/161853
Authors: 
Ilut, Cosmin
Kehrig, Matthias
Schneider, Martin
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper 6414
Abstract: 
Concave hiring rules imply that firms respond more to bad shocks than to good shocks. They provide a unified explanation for several seemingly unrelated facts about employment growth in macro and micro data. In particular, they generate countercyclical movement in both aggregate conditional “macro” volatility and cross-sectional “micro” volatility as well as negative skewness in the cross section and in the time series at different level of aggregation. Concave establishment level responses of employment growth to TFP shocks estimated from Census data induce significant skewness, movements in volatility and amplification of bad aggregate shocks.
Subjects: 
business cycles
time varying volatility
asymmetric adjustment
skewness
JEL: 
D20
D80
E20
J20
Document Type: 
Working Paper

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