unemployment and output fluctuations. The central question is whether the rule based component (i.e., the existence of the … our baseline scenario the rule based component stabilizes unemployment fluctuations by 15% and output fluctuations by 7 … significant effect on unemployment. These effects are based on a structural VAR estimation which is identified using the output …

driver of the unusually small increase in German unemployment in the Great Recession. One possible explanation is that firms …

rate and the unemployment rate? In the model, fluctuations are prominently driven by productivity shocks which are commonly … replicates the conditional volatility of job finding and unemployment, so that the Shimer critique does not apply. Instead the … shocks lead to a fall in job finding and an increase in unemployment thereby opposing the dynamics in the standard model …