مقاله انگلیسی رایگان در مورد پویایی بازار کار، رشد درونی و قیمت دارایی (الزویر)

In this study we present an extension of a key macro-finance model which links endogenous growth theory to asset pricing. The leading literature in this field either accounts for endogenous capital accumulation or endogenous labor supply, but not for both. In the economy of Kung and Schmid (2015), which we use as a benchmark, labor supply is inelastic (i.e. fixed). On the other hand, Croce et al. (2013) do not utilize physical capital as a production factor.2,3 We bridge this gap by adding endogenous labor supply and wage rigidities to the Kung and Schmid (2015) model (hereinafter ‘KS’). Labor market dynamics have been shown to be an important driver of business cycles. Particularly, both empirical and theoretical studies emphasize the importance of wage rigidities in explaining labor growth volatility, wage dynamics, and asset prices (Campbell and Kamlani, 1997; Agell and Lundborg, 2003; Hall, 2005; Blanchard and Galí, ۲۰۰۷; Merz and Yashiv, 2007; Smets and Wouters, 2007; Uhlig, 2007; Belo et al., 2014; Favilukis and Lin, 2016). In this respect, our work is closely related to Favilukis and Lin (2016) who introduce sticky wages into a production economy in order to explain several features of financial data. In their setting, the introduction of wage rigidities makes wages less pro-cyclical, profits more volatile and dividends highly pro-cyclical. If coupled with several other frictions and shocks, the model produces relatively smooth wages, a high equity premium, and it can account for 75% of the equity return volatility. However, similarly to KS, labor supply decisions are not endogenized.