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Content archived on 2024-06-18

Microeconomic Heterogeneity and Macroeconomic Performance

Objective

"How do macroeconomic shocks propagate over time? How are they amplified? How do they affect macroeconomic aggregates? And what role does the labor market and its frictions play in the business cycle? These questions are at the heart of theoretical and empirical business cycle research. Better answers to these questions are important to European policy makers, especially in times of economic distress and uncertain growth perspectives in Europe, to more effectively design macro- and, as this project argues, microeconomic policies.

This project develops a micro-to-macro-and-back analysis of the production side of the economy and its role in macroeconomic activity. The academic research agenda in macroeconomics has been rapidly moving towards an approach that takes microeconomic modelling seriously, focusing on the effects of micro-economic heterogeneity and rigidities. This is driven by a number of factors: the increasing availability of data showing the importance of micro behaviour in explaining macro activity; the increase in computer power making realistic simulation analysis of these results possible, and finally by the development of algorithmic capacities, such as in Krusell and Smith (1998), to model endogenous evolutions of micro-heterogeneities in general equilibrium models.

This project fits squarely into this new research agenda in that it makes use of new micro data sets and state-of-the-art computational techniques to shed some light on the aforementioned questions. This will be done in three subprojects, focusing on three research objectives: 1) to quantify the extent of employment adjustment frictions using a novel data set and a novel econometric (nonparametric) approach, 2) to investigate the joint cyclical dynamics of job and worker flows and 3) to understand the impact of macroeconomic shocks on heterogeneous production units."

Fields of science (EuroSciVoc)

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Topic(s)

Calls for proposals are divided into topics. A topic defines a specific subject or area for which applicants can submit proposals. The description of a topic comprises its specific scope and the expected impact of the funded project.

Call for proposal

Procedure for inviting applicants to submit project proposals, with the aim of receiving EU funding.

FP7-PEOPLE-2010-RG
See other projects for this call

Funding Scheme

Funding scheme (or “Type of Action”) inside a programme with common features. It specifies: the scope of what is funded; the reimbursement rate; specific evaluation criteria to qualify for funding; and the use of simplified forms of costs like lump sums.

MC-IRG - International Re-integration Grants (IRG)

Coordinator

RHEINISCH-WESTFAELISCHE TECHNISCHE HOCHSCHULE AACHEN
EU contribution
€ 100 000,00
Address
TEMPLERGRABEN 55
52062 Aachen
Germany

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Region
Nordrhein-Westfalen Köln Städteregion Aachen
Activity type
Higher or Secondary Education Establishments
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Total cost

The total costs incurred by this organisation to participate in the project, including direct and indirect costs. This amount is a subset of the overall project budget.

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