Université de Montréal
NBER Working Papers and Publications
|August 2017||The Employment and Output Effects of Short-Time Work in Germany|
with Russell Cooper, Moritz Meyer: w23688
We study the employment and output effects of the short-time work (STW) policy in Germany between 2009 and 2010. This intervention facilitated reductions in hours worked per employee with the goal of preventing layoffs. Using confidential German micro-level data we estimate a search model with heterogeneous multi-worker firms as a basis for policy analysis. Our findings suggest that STW can prevent increases in unemployment during a recession. However, the policy leads to a decrease in the allocative efficiency of the labor market, resulting in significant output losses. These effects arise from a reduction in the vacancy filling rate resulting from the policy intervention.
|December 2013||Capital Reallocation and Aggregate Productivity|
with Russell W. Cooper: w19715
This paper studies the productivity implications of the cyclical reallocation of capital. Frictions in the reallocation process are a source of factor misallocation. Cyclical movements in these frictions lead to variations in the degree of reallocation and thus in productivity. These frictions also impact the capital accumulation decision. The effects are quantitatively important in the presence of fluctuations in adjustment frictions and/or the cross sectional variation of profitability shocks. The cyclicality of the output loss due to costly reallocation depends on the joint distribution of capital and plant-level productivity. Instead of relying on approximative solution techniques we show analytically that a higher-order moment is needed to solve the model accurately. Even without aggr...