The literature has empirically shown that the labor wedge worsens during recessions. Taking this statement into consideration, study poses two questions: First, what is main driving force of wedge, and second, driver same as business cycles? In study, we employ a commonly used medium-scale dynamic stochastic general equilibrium model with nominal real frictions to analyze which structural shock...

The nonlinear stability in the //-norm, p > 1 , of stationary weak discrete shocks for the Lax-Friedrichs scheme approximating general m x m systems of nonlinear hyperbolic conservation laws is proved, provided that the summations of the initial perturbations equal zero. The result is proved by using both a weighted estimate and characteristic energy method based on the internal structures of t...

The nonlinear stability of travelling Lax shocks in semidiscrete conservation laws involving general spatial forward-backward discretization schemes is considered. It is shown that spectrally stable semidiscrete Lax shocks are nonlinearly stable. In addition, it is proved that weak semidiscrete Lax profiles satisfy the spectral stability hypotheses made here and are therefore nonlinearly stable...

This paper investigates the linear and nonlinear effects of financial regulation policy uncertainty shocks on US macroeconomic aggregates within a Vector Autoregressive (VAR) framework. Financial regulation policy uncertainty (FRPU) is quantified with a news-based index developed by Baker et al. (2013). Particular attention is paid to the reaction of corporate credit spreads to FRPU shocks. The...

We study individual male earnings dynamics over the life cycle using panel data on millions of U.S. workers. Using nonparametric methods, we first show that distribution changes exhibits substantial deviations from lognormality, such as negative skewness and very high kurtosis. Further, extent these nonnormalities varies significantly with age level, peaking around 50 between 70th 90th percenti...