Do transitory economic shocks affect neonatal outcomes? I show that an unexpected, monthlong blackout in Tanzania caused a sharp but temporary drop in work hours for workers in electricity-dependent jobs. Using records from a maternity ward, I document a reduction in birth weights for children exposed in utero to the blackout, and an increase in the probability of low birth weight. The reductio...

Existing evidence suggests that individuals frequently misperceive the value of their wealth. We test existence, and estimate sign magnitude, an inaccurate perception individual net worth. By conducting a laboratory experiment, we find most subjects perceive given worth as greater than its true this misperception increases for lower values leverage ratio i.e., liabilities-assets ratio. identify...

Existing evidence suggests that girls are differentially affected by income shocks and changes in bargaining power. Most studies, however, ignore household production and confound differential opportunity costs with changes in income or bargaining power. I disentangle these determinants of gender discrimination—preferences, income and time allocation—by comparing households with varying degrees...

To what extent do firms pass through idiosyncratic shocks to their workers? In this paper, we investigate question focusing on passthrough income for workers that stay in the firm and employment stability. We take an empirical approach use matched employer-employee data from Denmark, three different measures of performance (sales, value added, added per worker), two (earnings hourly wages). dis...

Using the definitions of δand δ′-shocks for the systems of conservation laws [12], [13], [39], the Rankine–Hugoniot conditions for δand δ′-shocks are derived. We present a construction of solutions to the Cauchy problems admitting δand δ′-shocks. In particular, the Riemann problem admitting shocks, δ-shocks, δ′-shocks, and vacuum states is considered. The geometric aspects of δand δ′-shocks are...

We investigate business cycle dynamics for 26 countries, estimating a set of nonlinear models for real GDP where appropriate. We find a great deal of heterogeneity in the dynamics of real output growth across countries. At the same time, a common feature is the asymmetric response of real GDP to shocks and the tendency for negative real GDP shocks to be less persistent than positive real GDP sh...

This paper is devoted to the rigorous theory of nonlinear geometric optics for multiple shocks to a general N × N conservation law in one space variable. For the problem of multiple weak shocks perturbed by small amplitude, high-frequency oscillatory waves, we obtain that the leading profiles of oscillatory shocks are solution to an integro-differential system with free boundaries, the leading ...

Abstract Using firm-level survey information, we investigate whether relationship lending affects firms’ employment decisions in the face of negative sales shock. We find that firms with a durable their main bank display significantly less growth sensitivity to such shocks, especially where these are transitory. The result is stronger for younger and smaller benefit from tighter bank-firm relat...

Understanding differences in business cycle phenomena between Emerging Market Economies (EMEs) and industrialized countries has been at the center of recent research on macroeconomic fluctuations. We investigate whether these are linked to credit market imperfections. To this end, we develop a small open economy Dynamic Stochastic General Equilibrium (DSGE) framework featuring both permanent tr...

This paper provides new evidence on the cyclical behaviour of household labour income risk in Great Britain and role social insurance policy mitigating against this source risk. To achieve this, we decompose stochastic idiosyncratic into its transitory persistent components. We focus our analysis captured by second to fourth moments probability distribution shocks component income. find that in...