Essays on Macroeconomic Trends and Cycles

This dissertation describes two studies on macroeconomic trends and cycles. The first chapter studies the impact of Information Technology (IT) on the U.S. labor market. Over the past 30 years, employment and income shares of routine-intensive occupations have declined significantly relative to nonroutine occupations, and the overall U.S. labor income share has declined relative to capital. Furthermore, the decline of routine employment has been largely concentrated during recessions and ensuing recoveries. I build a model of unbalanced growth to assess the role of computerization and IT in driving these labor market trends and cycles. I augment a neoclassical growth model with exogenous IT progress as a form of Routine-Biased Technological Change (RBTC). I show analytically that RBTC causes the overall labor income share to follow a U-shaped time path, as the monotonic decline of routine labor share is increasingly offset by the monotonic rise of nonroutine labor share and the elasticity of substitution between the overall labor and capital declines under IT progress. Quantitatively, the model explains nearly all the divergence between routine and nonroutine labor in the period 1986-2014, as well as the mild decline of the overall labor share between 1986 and the early 2000s. However, the model with IT progress alone cannot explain the accelerated decline of labor income share after the early 2000s, suggesting that other factors, such as globalization, may have played a larger role in this period. Lastly, when nonconvex labor adjustment costs are present, the model generates a stepwise decline in routine labor hours, qualitatively consistent with the data. The timing of these trend adjustments can be significantly affected by aggregate productivity shocks and concentrated in recessions. The second chapter studies the implications of loss aversion on the business cycle dynamics of aggregate consumption and labor hours. Loss aversion refers to the fact that people are distinctively more sensitive to losses than to gains. Loss averse agents are very risk averse around the reference point and exhibit asymmetric responses to positive and negative income shocks. In an otherwise standard Real Business Cycle (RBC) model, I study loss aversion in both consumption alone and consumption-and-leisure together. My results indicate that how loss aversion affects business cycle dynamics depends critically on the nature of the reference point. If, for example, the reference point is status quo, loss aversion dramatically lowers the effective inter-temporal rate of substitution and induces excessive consumption smoothing. In contrast, if the reference point is fixed at a constant level, loss aversion generates a flat region in the decision rules and asymmetric impulse responses to technology shocks. Under a reasonable parametrization, loss aversion has the potential to generate asymmetric business cycles with deeper and more prolonged recessions.

THE EFFECTIVENESS OF POINT-OF-VIEW VIDEO MODELING IN TEACHING SOCIAL INITIATION SKILLS TO CHILDREN WITH AUTISM SPECTRUM DISORDERS

Deficits in social communication and interaction have been identified as distinguishing impairments for individuals with an autism spectrum disorder (ASD). As a pivotal skill, the successful development of social communication and interaction in individuals with ASD is a lifelong objective. Point-of-view video modeling has the potential to address these deficits. This type of video involves filming the completion of a targeted skill or behavior from a first-person perspective. By presenting only what a person might see from his or her viewpoint, it has been identified to be more effective in limiting irrelevant stimuli by providing a clear frame of reference to facilitate imitation. The current study investigated the use of point-of-view video modeling in teaching social initiations (e.g., greetings). Using a multiple baseline across participants design, five kindergarten participants were taught social initiations using point-of-view video modeling and video priming. Immediately before and after viewing the entire point-of-view video model, the participants were evaluated on their social initiations with a trained, typically developing peer serving as a communication partner. Specifically, the social initiations involved participants’ abilities to shift their attention toward the peer who entered the classroom, maintain attention toward the peer, and engage in an appropriate social initiation (e.g., hi, hello). Both generalization and maintenance were tested. Overall, the data suggest point-of-view video modeling is an effective intervention for increasing social initiations in young students with ASD. However, retraining was necessary for acquisition of skills in the classroom environment. Generalization in novel environments and with a novel communication partner, and generalization to other social initiation skills was limited. Additionally, maintenance of gained social initiation skills only occurred in the intervention room. Despite the limitations of the study and variable results, there are a number of implications moving forward for both practitioners and future researchers examining point-of-view modeling and its potential impact on the social initiation skills of individuals with ASD.