University of Minnesota
Department of Economics
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University of Minnesota Jacek RothertEconomics Job Market Candidatee-mail: rothert@umn.eduCurriculum Vitae [pdf] |
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| Research interests Macroeconomics, International Economics, Growth and Development Thesis committee Prof. Fabrizio Perri (co-advisor) Prof. Timothy J. Kehoe (co-advisor) Prof. Christopher Phelan Contact E-mail: rothert@umn.edu Phone: 1-612-232-8637 (cell) Phone: 1-612-204-5889 (FED) Phone: 1-612-625-2024 (UofM) University of Minnesota Department of Economics 4-101 Hanson Hall Minneapolis, MN 55455 |
Job Market Paper Endogenous Regime Switching [main text, appendix]
ABSTRACT: I develop a model of switching between good and bad policy regimes
where transition probabilities are endogenous. A politician chooses a
policy regime that affects its own and households' payoffs.
Households face a sequence of politicians, observe regime with noise,
and decide whether or not to change the government. The decision to
switch depends on the expectation of choices of future politicians,
which in turn depend on households switching decisions. I
characterize equilibria and show how switching probabilities depend
on fundamentals (preferences and technology). Model implications
about output volatility in a cross-section of countries are supported
by the data. |
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