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. …

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 …

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 …

I calculate unemployment multipliers of fiscal consolidation policies in a standard, closed-economy New Keynesian … percentage of family firms in the labor force. I find that fiscal austerity raises unemployment. Both at peak and cumulatively …, unemployment reacts least when the budget is consolidated by increasing the rate of value-added tax. At peak, the highest increase …

I calculate unemployment multipliers of fiscal consolidation policies in a standard, closed-economy New Keynesian … percentage of family firms in the labor force. I find that fiscal austerity raises unemployment. Both at peak and cumulatively …, unemployment reacts least when the budget is consolidated by increasing the rate of value-added tax. At peak, the highest increase …

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