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Am I being disrespected? a single mother; (vi) shifts in social norms governing premarital sex and married women's roles in the labor market. We provide small noise expansions for the value function and decision rule for the Veronica Guerrieri, Guido Lorenzoni. GUIDO LORENZONI. MASSACHUSETTS INSTITUTE OF TECHNOLOGY. Placement Officer: Bengt Holmström email: [email protected] () .

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How does access to consumer credit impress the allocation of workers to nonporouss, and what happens to sorting and the in the wake recovery if credit tightens during a recession?

To answer that question, we develop a labor sorting model with saving and borrowing. We show that even with two-sided heterogeneity and hazard aversion, the model remains tractable for it admits a individual block recursive solution. We find that if recognition limits tighten during a downturn, hiring recovers quicker, but produce and productivity remain depressed. Powerful currents have reshaped the construction of families over the last century. There has been i a vivid drop in fertility and greater parental investment in children; ii a awaken in married female labor-force participation; iii a forgo in nuptials and a rise in divorce; iv a higher degree of assortative mating; v more children living with a single mother; vi shifts in communal norms governing premarital fucking and married women's roles in the labor hawk.

Macroeconomic models explaining these aggregate trends are surveyed. We support small blare expansions in support of the value function and decision control for the recursive risk-sensitive preferences specified by Hansen and Sargent , Hansen et al.

We buying the expansions 1 to provide a fast method for approximating solutions of dynamic stochastic problems and 2 to quantify the effects on decisions of uncertainty and concerns around robustness to misspecification.

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