We consider a dynamic general equilibrium model with collective wage bargaining and investigate how unemployment … unemployment persistence by its adverse impact on growth, and may even destabilize the adjustment path. If this is the case, a … future fiscal consolidation is needed which further raises unemployment. These results are consistent with empirical evidence …

account for the empirical relation between the job-finding rate and the vacancy-unemployment ratio, provided that search costs …

account for the empirical relation between the job-finding rate and the vacancy-unemployment ratio, provided that search costs … ; unemployment …

We show that equilibrium involuntary unemployment emerges in a multi-stage game model where all market power resides … returns there exists a continuum of subgame perfect equilibria involving unemployment. A firm does not undercut the … employment equilibria may also exist, but only the involuntary unemployment equilibria are robust to decreasing returns …

We consider a dynamic general equilibrium model with collective wage bargaining and investigate how unemployment … unemployment persistence by its adverse impact on growth, and may even destabilize the adjustment path. If this is the case, a … future fiscal consolidation is needed which further raises unemployment. These results are consistent with empirical evidence …

We show that equilibrium involuntary unemployment emerges in a multi-stage game model where all market power resides … returns there exists a continuum of subgame perfect equilibria involving unemployment. A firm does not undercut the … employment equilibria may also exist, but only the involuntary unemployment equilibria are robust to decreasing returns. …