Reallocation and the Changing Nature of Economic Fluctuations

Abstract

We document three changes in the nature of economic uctuations that coincide with the onset of the Great Moderation and the Jobless Recoveries phenomenon. Labor productivity turned from strongly procyclical to countercyclical; sectoral reallocation of labor increased and became less temporally concentrated in the initial stages of a recession; and much of the reduction in volatility of various aggregate time series was concentrated in the higher frequency component of those series, while the switch in cyclicality is concentrated in the medium frequency component. We construct a model of labor reallocation that can account for these facts.

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 31 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.