Business cycle asymmetries: Loss aversion, sticky prices, and wages

In this chapter, the Smets-Wouters (2003) New Kenesian model is reformulated by introducing the loss aversion utility function developed in chapter two. The purpose of this is to understand how asymmetric real business cycles are linked to asymmetric behavior of agents in a price and wage rigidities set up. The simulations of the model reveal not only that the loss aversion in consumption and leisure is a good mechanism channel for explaining business cycle asymmetries, but also is a good mechanism channel for explaining asymmetric adjustment of prices and wages. Therefore the existence of asymmetries in Phillips Curve. Moreover, loss aversion makes downward rigidities in prices and wages stronger and also reproduces a more severe and persistent fall of the employment. All in all, this model generates asymmetrical real business cycles, asymmetric price and wage adjustment as well as hysteresis.

A DSGE model with loss aversion in consumption and leisure: an explanation for business cycles asymmetries

In this chapter, an asymmetric DSGE model is built in order to account for asymmetries in business cycles. One of the most important contributions of this work is the construction of a general utility function which nests loss aversion, risk aversion and habits formation by means of a smooth transition function. The main idea behind this asymmetric utility function is that under recession the agents over-smooth consumption and leisure choices in order to prevent a huge deviation of them from the reference level of the utility; while under boom, the agents simply smooth consumption and leisure, but trying to be as far as possible from the reference level of utility. The simulations of this model by means of Perturbations Method show that it is possible to reproduce asymmetrical business cycles where recession (on shock) are stronger than booms and booms are more long-lasting than recession. One additional and unexpected result is a downward stickiness displayed by real wages. As a consequence of this, there is a more persistent fall in employment in recession than in boom. Thus, the model reproduces not only asymmetrical business cycles but also real stickiness and hysteresis.

Escala de ajuste a la pérdida visual relacionada con la edad : adaptación española de la Age-related Vision Loss Scale (AVL Scale) de A. Horowitz y J. P. Reinhardt.

Resumen tomado de la publicación

La transici??n al mundo laboral de los j??venes con deficiencias auditivias = Entry into working life of youth with hearing difficulties

Resumen basado en el del autor

''L'intervallo perduto'' nella Metropoli Modern

The city is not only a visual environment, but it is also sonorous and therefore the “unintentional hearing which is much more influencing” is involved in an urban space experience just as sight is. Beginning with Assunto’s consideration in Il paesaggio e l’estetica, the analysis we provide cannot avoid outlining the peculiarities of aestetic fruition of the city seen as a space we cross, in which we live and in which we, as a matter of fact, are agent actors. And it is as a consequence of this peculiarity that silence has a leading role in our urban experience. Seen as a presence of itself, it is a positive value especially if we consider that nowadays modernity is expressed through its absence. It is an absence that reaches its climax in the experience of the metropolis. Besides Assunto, there is another witness of this in Simmel’s The Metropolis and Mental Life from which our analysis cannot leave out of consideration. Given that this analysis is a sort of analytic excursus it develops around a well defined barycentre represented by the acoustic experience of the city that focuses on the presence/absence of silence as a result of modernity. Taking the first steps from Assunto and Simmel’s assumptions, this work takes into account the theme of silence in the metropolis and introduces it as a loss of interval and thus uses the analysis carried out by Dorfles in L’intervallo perduto and in Horror Pleni. The metropolitan experience is highly characterized by a sensory disorientation for which we can detect a “strong” starting, the Great War, which shows a caesura that outlines the edges of a new mental world. It shows the systematic use of modern technique, of its sonorous universe and urbanization which appears as a corollary of this picture.