Cornell University

This is a past event. Its details are archived for historical purposes.

The contact information may no longer be valid.

Please visit our current events listings to look for similar events by title, location, or venue.

The S. C. Tsiang Macroeconomics Workshop: Arlene Wong

Thursday, October 26, 2017 at 11:40am to 1:10pm

Uris Hall, 498
Central Campus

Arlene Wong
Princeton University

PDF icon Trading Down and the Business Cycle (joint w/Nir Jaimovich & Sergio Rebelo)

We document two facts. First, during the Great Recession, consumers traded down in the quality of the goods and services they consumed. Second, the production of low-quality goods is less labor intensive than that of high-quality goods.  When households traded down, labor demand fell, increasing the severity of the recession. We find that the trading-down phenomenon accounts for a substantial fraction of the fall in U.S. employment in the recent recession. We show that embedding quality choice in a business-cycle model improves the model's amplification and comovement properties.

Event Type

Class/ Workshop




EconMacro, EconSeminar, Ecomomics



Contact E-Mail

Contact Name

Amy Moesch

Contact Phone



Arlene Wong

Speaker Affiliation

Princeton University

Open To

Cornell Economics Community (List Serve Members)

Google Calendar iCal Outlook