The Stock Market and Unemployment: The Cross-Section Volatility Model
Ever since the evolvement of modern macroeconomics, theories without foundation in the Keynesian view, such as Real Business Cycle (RBC) theories, have aimed for recognition.The purpose of this paper is to examine whether the Cross-Section Volatility model (CSV), a RBC-model developed by Laclair Brainard and David Cutler (1993) based on US data, holds and demonstrates …