Y Chang… - International Economic Review, 2006 - Wiley Online Library
Chang, Y. and Kim, S.-B.(2006), FROM INDIVIDUAL TO AGGREGATE LABOR SUPPLY: A
QUANTITATIVE ANALYSIS BASED ON A HETEROGENEOUS AGENT MACROECONOMY.
International Economic Review, 47: 1–27. doi: 10.1111/j. 1468-2354.2006. 00370. x
Y Chang, JF Gomes… - The American economic …, 2002 - ingentaconnect.com
Abstract: This paper suggests that skill accumulation through past work experience, or"
learning-by-doing"(LBD), can provide an important propagation mechanism in a dynamic
stochastic general-equilibrium model, as the current labor supply affects future productivity ...
Y Chang, T Doh… - Journal of Money, Credit and …, 2007 - Wiley Online Library
We are thankful to Martin Eichenbaum and Robert Vigfusson, who kindly provided their data.
We also thank Ken West (co-editor) and two anonymous referees for their helpful comments.
Chang gratefully acknowledges the Research Grant of the School of Economics at Seoul ...
Y Chang… - The American economic review, 2006 - JSTOR
Despite controversies concerning the quantitative importance of technology as a source of
business cycles, technology's effect on employment is conventionally viewed as
expansionary. Recently, a number of studies-Jordi Gali (1999), Michael Kiley (1998), ...
Y Chang… - Journal of Monetary Economics, 2003 - Elsevier
We propose a new VAR identification scheme that distinguishes shifts of and movements
along the labor demand schedule to identify labor-supply shocks. According to our VAR
analysis of post-war US data, labor-supply shifts account for about 30 percent of the ...
M Bils… - Carnegie-Rochester Conference Series on Public …, 2000 - Elsevier
The importance of sticky prices in business-cycle fluctuations has been debated for many
years. But we argue, based on a large empirical literature from the 1950s and 60s, that it is
necessary to distinguish the response of price to an increase in factor prices from its ...
Y Chang… - The American Economic Review, 2007 - JSTOR
This paper addresses two related issues from the business cycle literature. One is the low
correlation between hours and productivity. The second is the large cyclical movement in the
wedge derived from the optimality condition for the intratemporal choice of commodity ...
Y Chang… - 2003 - papers.ssrn.com
Abstract: Recently, Gali and others find that technological progress may be contractionary: a
favorable technology shock reduces hours worked in the short run. We ask whether this
observation is robust in disaggregate data. According to our VAR analysis of 458 four-digit ...
Y Chang - Journal of Monetary Economics, 2000 - Elsevier
Two investment anomalies in aggregate home-production models are investigated: excess
volatility and comovement. Adjustment cost in capital accumulation reduces both volatility
and the negative correlation in investments on capital goods in the market and at home. ...
Y Chang - Journal of Monetary Economics, 2000 - Elsevier
The standard equilibrium models of business cycles face a puzzling fact that total hours vary
greatly over the business cycle without much variation in aggregate wages. The model
augments the standard RBC model to include Lucas span of control. Distinction between ...
Y Chang… - Federal Reserve Bank of Richmond Economic …, 2005 - richmondfed.org
Issues of labor supply are at the heart of macroeconomic studies of large cyclical
fluctuations. The population puts forth more work effort in booms than in slumps. Economists'
explanations of this phenomenon range from a pure market-clearing supply-and-demand ...
M Bils, Y Chang… - 2007 - nber.org
We introduce worker differences in labor supply, reflecting differences in skills and assets,
into a model of separations, matching, and unemployment over the business cycle.
Separating from employment when unemployment duration is long is particularly costly for ...
S An, Y Chang… - American Economic Journal: Macroeconomics, 2009 - JSTOR
Accounting for observed fluctuations in aggregate employment, consumption, and real wage
using the optimality conditions of a representative household requires preferences that are
incompatible with economic priors. In order to reconcile theory with data, we construct a ...
M Bils, Y Chang… - Journal of Monetary Economics, 2012 - Elsevier
Abstract Worker heterogeneity in productivity and labor supply is introduced into a matching
model. Workers who earn high wages and work high-hours are identified as those with
strong market comparative advantage—high rents from being employed. The model is ...
Y Chang, A Hornstein… - Journal of Monetary Economics, 2009 - Elsevier
Whether technological progress raises or lowers employment in the short run has been the
subject of much debate in the recent years. We show that cross-industry differences in
inventory holding costs, demand elasticities, and price rigidities potentially all affect ...
Y Chang… - Macroeconomics, 2004 - files.nyu.edu
Abstract The cyclical behavior of hours worked, wages, and consumption does not conform
with the predictions of the representative agent model with standard preferences. The
residual in the intra-temporal first-order condition for commodity consumption and leisure ...
M Bils… - Journal of Monetary Economics, 2003 - Elsevier
We examine the impact of wage stickiness when employment has an effort as well as hours
dimension. Despite wages being predetermined, the labor market clears through the effort
margin. Consequently, welfare costs of wage stickiness are potentially much, much ...
M Bils… - 1999 - nber.org
We examine the impact of wage stickiness when employment has an effort as well as hours
dimension. Despite wages being predetermined, the labor market clears through the effort
margin. We compare this model quantitatively to models with flexible and sticky wages, ...
M Bils, Y Chang… - American Economic Journal: …, 2011 - ingentaconnect.com
Abstract: We model worker heterogeneity in the rents from being employed in a Diamond-
Mortensen-Pissarides model of matching and unemployment. We show that heterogeneity,
reflecting differences in match quality and worker assets, reduces the extent of fluctuations ...
Y Chang, A Hornstein… - 2004 - 147.46.167.195
Abstract Whether or not inventories can be used to break the link between production and
sales is crucial for understanding firms' employment response to productivity shocks. In a
Taylor-type sticky-price model with inventories, we show that the employment response to ...
M Bils, Y Chang… - 2009 - nber.org
We model worker heterogeneity in the rents from being employed in a Diamond-Mortensen-
Pissarides model of matching and unemployment. We show that heterogeneity, reflecting
differences in match quality and worker assets, reduces the extent of fluctuations in ...
Y Chang, SB Kim… - 2009 - books.google.com
This paper uses household survey data to estimate the incidence of tax and spending
programs in Honduras. Any such exercise is fraught with difficulty, so our simplifying
assumptions are carefully explained. Rather than look at tax and spending completely ...
Y Chang, J Nam… - Journal of the Japanese and International …, 2004 - Elsevier
We investigate the steady decline in aggregate unemployment rates in Korea since the
1960s. We argue that a pronounced decrease in the intensity of reallocation shocks, which
resulted in a downward trend in the natural rate of unemployment, has been an important ...
Y Chang… - 2007 - nber.org
Abstract Capital deepening has played an important role for the economic development of
many countries, especially for the East Asian 'Growth Miracles.'At the same time the fraction
of output invested in capital increased gradually over time. These growth characteristics ...
Y Chang, SB Kim… - 2010 - nber.org
This paper assesses biases in policy predictions due to the lack of invariance of"
structural''parameters in representative-agent models. We simulate data under various fiscal
policy regimes from a heterogeneous-agents economy with incomplete asset markets and ...
Y Chang… - Economics Letters, 2001 - Elsevier
We decompose the underlying disturbances in total hours into three kinds: disturbances that
shift the level of employment in the long run, those that change the sectoral composition of
employment in the long run, and those that cause temporary movement of hours. Our ...
Y Chang… - Working Paper, 2003 - ideas.repec.org
We propose a new VAR identification scheme that distinguishes shifts of and movements
along the labor demand schedule to identify labor-supply shocks. According to our VAR
analysis of post-war US data, labor-supply shifts account for about 30 percent of the ...
[CITATION] Sun $ Bin Kim, 2007, mComparative Advantage and Cycli $ cal Unemployment
M Bils… - NBER Working Paper
[CITATION] Productivity, Empolyment and Inventory
Y Chang, A Hornstein… - Federal Reserve Bank of Richmond Working …, 2004
[CITATION] Sun $ Bin Kim (2003), mFrom Individual to Aggregate Labor Sup $ ply: A Quantitative Analysis based on a Heterogeneous Agent Macroeconomyn
Y Chang - International Economic Review
Y Chang, J Gomes… - Econometric Society World …, 2000 - ideas.repec.org
To generate persistence we augment the standard real business cycle (RBC) model with
a``learning by doing''(LBD) mechanism, where current labor supply affects workers' future
labor productivity. Our econometric analysis shows that the LBD model fits aggregate data ...
Y Chang… - 2002 - Citeseer
Abstract Macroeconomists often assume an elastic labor supply, despite the low estimates
from various micro studies. The extensive margin (entry-exit margin) has been recognized
as a potential resolution. We construct a model economy in which heterogeneous agents ...
[CITATION] qHome Production and Macroeco'nomics, rNew Palgrave Dictionary of Economics
Y Chang… - 2008 - New York, McMillan
Y Chang, SB Kim, K Kwon… - The American Economic …, 2011 - ingentaconnect.com
Abstract: We construct a family model of labor supply that features adjustment along both the
intensive and extensive margin. Intensive margin adjsutment is restricted to two values: full-
time work and part-time work. Using simulated data from the steady state of the calibrated ...
[CITATION] Understanding the Response of Prices to Cost and Demand Factors
M Bils… - Carnegie-Rochester Series on Public Policy, 2000
Y Chang… - 2001 - papers.ssrn.com
Abstract: We investigate the role of labor-supply shifts in economic fluctuations. A new VAR
identification scheme for labor supply shocks is proposed. Our method provides an
alternative identification scheme, which does not rely on" zero-restrictions". According to ...
[CITATION] Understanding How Employment Responds to Productivity Shocks in a Model with Inventories. ederal Reserve Bank of Richmond Working Paper 06-06
Y Chang, A Hornstein… - Richmond, VA, 2006
[CITATION] Wages and the Allocation of Hours and E ort
M Bils… - 1998 - mimeo, University of Rochester
Y Chang… - 2004 Meeting Papers, 2004 - ideas.repec.org
We present a simple sticky-price model with inventories and show that the employment
response to a productivity shock depends crucially on the extent to which goods are
storable. If firms hold inventories, then, in response to a favorable cost shock, firms can ...
Y Chang… - The BE Journal of Macroeconomics, 2011 - sites.google.com
Abstract Using a standard incomplete-markets model with heterogeneous agents, we
compute the average welfare of two polar socio-economic systems: laissez-faire and
egalitarianism. The egalitarian system (in which after-tax wages are compressed) ...
Y Chang, SB Kim… - … manuscript, University of …, 2010 - canon-igs.org
Abstract Representative agent dynamic stochastic general equilibrium (DSGE) models are
widely used to analyze the effects of economic policy changes. A key assumption in policy
experiments is that taste and technology parameters as well as structural shocks are ...
Y Chang, SB Kim… - 2009 - 129.2.28.158
Abstract Representative agent dynamic stochastic general equilibrium (DSGE) models are
widely used to analyze the effects of economic policy changes. A key assumption in policy
experiments is that taste and technology parameters as well as structural shocks are ...
Y Chang - 1999 - Citeseer
Abstract: One of the challenges for equilibrium models of business cycles is to explain why
total hours vary greatly over the business cycle without much variation in wages in the data.
This paper augments the standard RBC model to include Lucas'(1978) span of control. ...
Y Chang… - RCER Working Papers, 2010 - rcer.econ.rochester.edu
Abstract We compute the welfare cost of egalitarianism—a tax policy that equalizes wages
for all. The benchmark “laissez-faire” economy has features a la Aiyagari (1994) with
endogenous labor supply. A progressive income tax provides insurance against income ...
Y Chang, A Hornstein… - 2006 - artsci.wustl.edu
Abstract Whether technological progress raises or lowers aggregate employment in the
short run has been the subject of much debate in recent years. Using a simple model of
industry employment, we show that cross-industry differences of inventory holding costs, ...
Y Chang… - RCER Working Papers, 2011 - sites.google.com
Abstract We identify the cyclical turning points of 74 US manufacturing industries and
uncover new empirical regularities:(i) Cyclical phase shifts are highly concentrated around
the aggregate turning points;(ii) In contrast to the conventional notion of a 'sudden stop ...
Y Chang… - RCER Working Papers, 2011 - rcer.econ.rochester.edu
Abstract Many cases of successful economic development, such as South Korea, exhibit
long periods of sustained capital accumulation rates. This empirical feature is at odds with
the standard neoclassical growth model which predicts initially high and then declining ...
Y Chang… - Macroeconomics, 2002 - ideas.repec.org
We examine the response of a sticky-wage economy to various real and nominal shocks. In
addition to variations in hours, we allow for an endogenous response in worker effort per
hour. Despite wages being predetermined, the labor market clears through the effort ...
[CITATION] Understanding the Forward Premium Puzzle: A Microstructure Approach Craig Burnside, Martin Eichenbaum, and Sergio Rebelo............. 127 The …
F STAN, R Reis… - American …, 2009 - American Economic Association
[CITATION] Essays on economic fluctuations and growth
Y Chang - 1997 - University of Rochester. Department …
Y Chang, T Doh… - 2005 - cepr.org
The time series fit of dynamic stochastic general equilibrium (DSGE) models often suffers
from restrictions on the long-run dynamics that are at odds with the data. Relaxing these
restrictions can close the gap between DSGE models and vector autoregressions. This ...
Y Chang, JF Gomes… - 2002 - cepr.org
This Paper suggests that skill accumulation through past work experience, or 'learning-by-
doing'(LBD), can provide an important propagation mechanism in a dynamic stochastic
general equilibrium model, as the current labour supply affects future productivity. Our ...
Y Chang… - 2010 - cepr.org
This paper assesses biases in policy predictions due to the lack of invariance of``structural''
parameters in representative-agent models. We simulate data under various fiscal policy
regimes from a heterogeneous-agents economy with incomplete asset markets and ...
Y Chang - ssc.upenn.edu
Abstract The standard equilibrium models of business cycles face a puzzling fact that total
hours vary greatly over the business cycle without much variation in aggregate wages. The
model augments the standard RBC model to include Lucas span of control. Distinction ...
Y Chang, J Gomes… - papers.ssrn.com
Abstract To generate persistence we augment the standard real business cycle (RBC)
model with a" learning by doing"(LBD) mechanism, where current labor supply affects
workers' future labor productivity. Our econometric analysis shows that the LBD model fits ...
Y Chang, S Kim, S Rebelo, P Kehoe… - 1998 - Citeseer
Abstract A dynamic-general-equilibrium-assignment model is developed. Agents self-select
into managerial, production, or non-market tasks based on comparative advantages. An
equilibrium is characterized by a mapping from the skill distribution and production ...
[CITATION] COMOVEMENT, EXCESS VOLATILITY, AND HOME PRODUCTION
C Yongsung - Journal of Monetary Economics, 2000 - Elsevier Science Publishing …
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