Microeconomic Origins of Macroeconomic Tail Risks

Microeconomic Origins of Macroeconomic Tail Risks

Using a multisector general equilibrium model, we show that the interplay of idiosyncratic microeconomic shocks and sectoral heterogeneity results in systematic departures in the likelihood of large economic downturns relative to what is implied by the normal distribution. Such departures can emerge...

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Bibliographic Details
Main Authors: Acemoglu, Daron (Author), Ozdaglar, Asuman (Author), Tahbaz-Salehi, Alireza (Author), Acemoglu, K. Daron (Contributor), Koksal, Asuman E. (Contributor)
Other Authors: Massachusetts Institute of Technology. Department of Economics (Contributor), Massachusetts Institute of Technology. Department of Electrical Engineering and Computer Science (Contributor), Massachusetts Institute of Technology. Laboratory for Information and Decision Systems (Contributor)
Format: Article
Language:English
Published: American Economic Association, 2017-08-21T19:33:08Z.
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