| Registro completo |
| Provedor de dados: |
AgEcon
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| País: |
United States
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| Título: |
Three Strikes and You're Out: Reply to Cooper and Willis
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| Autores: |
Caballero, Ricardo J.
Engel, Eduardo M.R.A.
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| Data: |
2006-01-27
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| Ano: |
2004
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| Palavras-chave: |
Adjustment hazard
Aggregate nonlinearities
Lumpy adjustment
Observed and unobserved gaps
Quadratic adjustment
Research Methods/ Statistical Methods
E2
J2
J6
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| Resumo: |
Cooper and Willis (2003) is the latest in a sequence of criticisms of our methodology for estimating aggregate nonlinearities when microeconomic adjustment is lumpy. Their case is based on reproducing our main findings using artificial data generated by a model where microeconomic agents face quadratic adjustment costs. That is, they supposedly find our results where they should not be found. The three claims on which they base their case are incorrect. Their mistakes range from misinterpreting their own simulation results to failing to understand the context in which our procedures should be applied. They also claim that our approach assumes that employment decisions depend on the gap between the target and current level of unemployment. This is incorrect as well, since the gap approach has been derived formally from at least as sophisticated microeconomic models as the one they present. On a more positive note, the correct interpretation of Cooper and Williss results shows that our procedures are surprisingly robust to significant departures from the assumptions made in our original derivations.
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| Tipo: |
Working or Discussion Paper
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| Idioma: |
Inglês
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| Identificador: |
19631
http://purl.umn.edu/28498
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| Editor: |
AgEcon Search
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| Relação: |
Yale University>Economic Growth Center>Center Discussion Papers
Center Discussion Paper No. 883
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| Formato: |
14
application/pdf
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