Tag Archives: Aggregate Demand

Long-Term Unemployment and the Great Recession: The Role of Composition, Duration Dependence, and Non-Participation

From Kory Kroft, Fabian Lange, Larry Katz, and Matt Notowidigdo: We explore the extent to which composition, duration dependence, and non-participation can account for the sharp increase in long-term unemployment (LTU) during the Great Recession. We first show that compositional shifts in … Continue reading

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Heterogeneity in the MPC: Evidence from the Crisis

We find evidence supportive of heterogeneity in the MPC by household income and leverage. For example, the MPC for households living in zip codes with an average annual income of less than $35 thousand is three times as large as … Continue reading

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