Search Complementarities, Aggregate Fluctuations, and Fiscal Policy

作者：Jesús Fernández‐Villaverde, Federico Mandelman, Yang Yu, Francesco Zanetti · 发表于：The Review of Economic Studies · 年份：2024 · DOI：10.1093/restud/rdae053 · 被引用次数：8 · 研究领域：Monetary Policy and Economic Impact、Economic Policies and Impacts、Economic theories and models

Abstract We document five novel facts about the role of search effort in forming trading relationships among firms by combining a variety of micro and macro datasets. These facts strongly suggest the presence of search complementarities. To study the implications of these facts for aggregate fluctuations, we build a dynamic general equilibrium model, disciplined by our new firm-level evidence on search effort. The model matches key aspects of the macro and micro data that have remained unaccounted for by standard models, including the time-varying bimodal distribution of output and the strong, nonlinear propagation of shocks. Also, changes to the volatility of shocks have nonlinear effects on macroeconomic fluctuations that advance a novel interpretation of the Great Moderation. Finally, we provide a new account of the state-dependent effects of fiscal policy.