| Sponsored by: Department of Economics, Cornell University Federal Reserve Bank of Minneapolis Department of Economics, UCLA October 11-12, 1996 |
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| Friday, October 11 | |
| 9:00 a.m. | Continental breakfast |
| Session 1: Credit and Business Cycles | |
| Chair: Roger Farmer | |
| 9:30 a.m. | “Credit Chains” Nobuhiro Kiyotaki, University of Minnesota, and John Moore, London School of Economics |
| Discussant: David Levine, UCLA | |
| 10:40 a.m. | Break |
| 10:50 a.m. | “Credit and Economic Activity: Shocks or Propagation Mechanism?” Nathan S. Balke and Chih-Ping Chang, Southern Methodist University and Federal Reserve Bank of Dallas |
| Discussant: James Hamilton, University of California, San Diego | |
| 12:00 p.m. | Lunch |
| Session 2: Indivisibilities and Capacity Utilization | |
| Chair: Edward C. Prescott | |
| 2:00 p.m. | “Toward an Endogenous Propagation Theory of Business Cycles” Paul Beaudry and Michael B. Devereaux, University of British Columbia |
| Discussant: Thomas F. Cooley, University of Rochester | |
| 3:10 p.m. | Coffee break |
| 3:30 p.m. | “Machine Replacement and the Business Cycle: Lumps and Bumps” Russell Cooper, Boston University, John Haltiwanger, University of Maryland, and Laura Power, Department of Treasury |
| Discussant: John Kennan, University of Wisconsin | |
| 4:40 p.m. | Break |
| 4:50 p.m. | “Plant Level Irreversible Investment and Equilibrium Business Cycles” Marcelo Veracierto, Cornell University |
| Discussant: Tryphon Kollintzas, Athens University of Economics | |
| 7:00 p.m. | Reception and conference dinner |
| Saturday, October 12 | |
| 9:00 a.m. | Continental breakfast |
| Session 3: Monetary Propagation | |
| Chair: Costas Azariadis | |
| 9:30 a.m. | “Expectation Traps and Discretion” V.V. Chari, University of Minnesota, Lawrence J. Christiano, Northwestern University, and Martin Eichenbaum, Northwestern University |
| Discussant: Michele Boldrin, Universidad Carlos III | |
| 10:40 a.m. | Break |
| 10:50 a.m. | “Policy Uncertainty and Informational Monopolies: The Case of Monetary Policy” Rodolfo Manuelli, University of Wisconsin, and Larry Jones, Northwestern University |
| Discussant: Scott Freeman, University of Texas–Austin | |
| 12:00 p.m. | Lunch |
| 2:00 p.m. | “Aggregate Fluctuations, Financial Constraints and Risk Sharing” Pamela Labadie, George Washington University |
| Discussant: Costas Azariadis, UCLA | |
| 3:10 p.m. | Coffee break |
| Session 4: Aggregation and Returns to Scale | |
| Chair: Gary D. Hansen | |
| 3:30 p.m. | “Aggregate Production Function Failures and Business Cycle Analysis” Susanto Basu, University of Michigan, John Fernald, Federal Reserve Board of Governors, and Michael Horvath, Stanford University |
| Discussant: Robert E. Hall, Stanford University | |
| 4:40 p.m. | Break |
| 4:50 p.m. | “Optimal Sectoral Shifts” Christopher Phelan and Alberto Trejos, Northwestern University |
| Discussant: John Fernald, Federal Reserve Board of Governors | |