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Browsing Departament d'Economia i Empresa by Author "Fajgelbaum, Pablo"

Browsing Departament d'Economia i Empresa by Author "Fajgelbaum, Pablo"

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  • Fajgelbaum, Pablo; Schaal, Edouard; Taschereau-Dumouchel, Mathieu (2019)
    We develop a theory of endogenous uncertainty and business cycles in which short-lived shocks can generate long-lasting recessions. In the model, higher uncertainty about fundamentals discourages investment. Since agents ...

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