| This dissertation consists of three chapters on business cycle properties of U.S. and Japan.;In chapter one, we construct a consistent set of quarterly Japanese data for the post-war period and compare properties of the Japanese and U.S. business cycles. In Japan most of the adjustment is in hours per worker of males and females and also in employment of females. In the U.S. most of the adjustment is in employment of both males and females. We formulate, estimate, and analyze a model that makes the distinction between the intensive and extensive margin and allows for gender differences in labor supply.;In chapter two, we analyze the price responses of multiple goods to a monetary policy shock, using an inventory theoretic model of money demand. Using the model, we show that (i) the durability of the goods, (ii) the payment instrument used in the transaction of the goods, and (iii) the size of the income elasticity of the goods, are important determinants of price responses of goods to a monetary policy shock. We find that the data are consistent with the model, in terms of the durability, and the size of the income elasticity.;In chapter three, we study the co-movement. The co-movement of output across the sector producing non-durables and the sector producing durables is well-established in the monetary business-cycle literature. However, standard sticky-price models cannot generate this feature. We argue that an input-output structure provides a solution to this problem.;Here we develop a two-sector model with an input-output structure, which is calibrated to the U.S. economy. In the model, each sector's output affects those of the others by acting as an intermediate input. This connection between the sectors provides a channel through which sectoral co-movement is induced. |
