Focusing on both hiring and firing margins, this paper revisits effects of fiscal expansion on unemployment. We develop … job finding, separation, and unemployment rates to a government spending shock, obtained from estimating a structural VAR … model with the U.S. data. However, our model fails to capture the response of vacancies and the volatility of unemployment. …

Focusing on both hiring and firing margins, this paper revisits effects of fiscal expansion on unemployment. We provide … unemployment in the U.S. by using a structural VAR model. We then develop a DSGE model with search frictions where job separation … unemployment rates to a government spending shock. We also demonstrate that model's predictions are in contrast with earlier …

This paper re-visits effects of fiscal expansion on employment and unemployment by focusing on both hiring and firing … separation. Second, while an increase in hiring subsidies increases employment and reduces unemployment in the model without … endogenous separation, it reduces employment and increases unemployment in our model. …

find that the unemployment rate falls and employment rises following an increase in government spending. We also find that … fiscal expansion affects flows in and out of unemployment. While an increase in government spending increases the job …

labor market to compare unemployment insurance (UI) expansions and payroll subsidies. In isolation, payroll subsidies that …

labor market to compare unemployment insurance (UI) expansions and payroll subsidies. In isolation, payroll subsidies that …

unemployment and output fluctuations. The central question is whether short-time work saves jobs in recessions. In our baseline … scenario the rule based component of short-time work (i.e., due to the existence of the institution) stabilizes unemployment …-time work interventions (i.e., rule changes) do not have any statistically significant effect on unemployment. These effects are …

This paper illustrates why fiscal policy becomes more effective as unemployment rises in recessions. The theory is … based on the equilibrium unemployment model of Michaillat (forthcoming), in which jobs are rationed in recessions. Fiscal …; therefore fiscal policy reduces unemployment effectively. Formally the fiscal multiplier—the reduction in unemployment rate …