The labor market effects of technology shocks

We analyze the effects of neutral and investment-specific technology shocks on hours worked and unemployment. We characterize the response of unemployment in terms of job separation and job finding rates. We find that job separation rates mainly account for the impact response of unemployment while job finding rates for movements along its adjustment path. Neutral shocks increase unemployment and explain a substantial portion of unemployment and output volatilityinvestment-specific shocks expand employment and hours worked and mostly contribute to hours worked volatility. We show that this evidence is consistent with the view that neutral technological progress prompts Schumpeterian creative destruction, while investment specific technological progress has standard neoclassical feature

Wage inequality, segregation by skill and the price of capital in an assignment model

Some pieces of empirical evidence suggest that in the U.S., over the last few decades, (i) wage inequality between-plants has risen much more than wage inequality within-plants and (ii) there has been an increase in the segregation of workers by skill into separate plants. This paper presents a frictionless assignment model in which these two features can be explained simultaneously as the result of the decline in the relative price of capital. Additional implications of the model regarding the skill premium and the dispersion in labor productivity across plants are also consistent with the empirical evidence. [resumen de autor

Credit Supply: Identifying Balance-Sheet Channels with Loan Applications and Granted Loans

To identify credit availability we analyze the extensive and intensive margins of lending with loan applications and all loans granted in Spain. We find that during the period analyzed both worse economic and tighter monetary conditions reduce loan granting, especially to firms or from banks with lower capital or liquidity ratios. Moreover, responding to applications for the same loan, weak banks are less likely to grant the loan. Our results suggest that firms cannot offset the resultant credit restriction by turning to other banks. Importantly the bank-lending channel is notably stronger when we account for unobserved time-varying firm heterogeneity in loan demand and quality

Applying Occam\u2019s razor to paper(and rock and scissors, too): Why simpler models are sometimes better.

A commonly held idea is that people engaged in guessing tasks try to detect sequential dependencies between the occurring events and behave accordingly. For instance, previous accounts of the popular Rock Paper Scissors game assume that people try to anticipate the move an opponent is likely to make and play a move capable of beating it. In the paper we propose that players modulate their behavior by reacting to the effects it produces on the environment, i.e., that they behave exactly as they do in non competitive situations. We present an experiment in which participants play against a computer controlled by different algorithms and develop a procedural model, based on the new ACT-R utility learning mechanism, that is able to replicate the participants' behavior in all the experimental conditions

Implicit emotional biases in decision making: The case of the Gambling Task.

Many authors have endorsed the hypothesis that previous emotional experiences may exert a covert influence on behavior, but some findings and replications of the original studies challenged this view. We investigated this topic by carrying out an experiment with the Iowa Gambling Task (IGT), where a dissociation procedure was adopted to successfully isolate possible implicit components. After a typical interaction with the IGT, participants performed a \u2018\u2018blind\u2019\u2019 card selection phase without receiving any feedback. Half of them were instructed to continue choosing as they did before, the other half was told that good card decks turned bad, and vice versa, so that explicit knowledge was necessary to overcome the previously learned deck-outcome associations. The results confirmed the existence of early acquired implicit biases, confirming that previously experienced emotional events may covertly affect subsequent behavior