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Evaluating the Performance of the Search and Matching Model

Yashiv, Eran - C.E.P.R. Discussion Papers - 2005

specifications of the data on many dimensions, though not on all. This includes capturing the high persistence and high volatility of … most of the key variables, the negative co-variation of unemployment and vacancies, and the behaviour of the worker job … finding rate. A key role in this fit is played by the convexity of hiring costs and the stochastic properties of the …

Persistent link: https://www.econbiz.de/10005124215

Factor adjustment costs: A structural investigation

Mumtaz, Haroon; Zanetti, Francesco - In: Journal of Economic Dynamics and Control 51 (2015) C, pp. 341-355

This paper assesses various capital and labor adjustment costs functions estimating a general equilibrium framework with Bayesian methods using US aggregate data. The estimation finds that the adjustment costs are convex in both capital and labor and allowing for their joint interaction is...

Persistent link: https://www.econbiz.de/10011190675

Sclerosis and large volatilities: Two sides of the same coin

Gartner, Hermann; Merkl, Christian; Rothe, Thomas - In: Economics Letters 117 (2012) 1, pp. 106-109

large volatilities are two sides of the same coin. Both may be driven by large hiring costs and low quit rates. …

Persistent link: https://www.econbiz.de/10010580537

Search and Matching in Macroeconomics

Yashiv, Eran - C.E.P.R. Discussion Papers - 2006

This paper surveys the use of search and matching models in macroeconomics. It outlines the standard model, discusses its extensions, presents alternative formulations, considers the empirical evidence, and studies applications to macroeconomic questions such as business cycles, growth, and...

Persistent link: https://www.econbiz.de/10005792066

Inefficient employment decisions, entry costs, and the cost of fluctuations

Den Haan, Wouter; Sedlacek, Petr - C.E.P.R. Discussion Papers - 2009

Fluctuations in firms' revenues reduce firms' viability and are costly from a social welfare point of view even when agents are risk neutral if (i) the decision to continue operating a firm is not efficient at the margin so that fluctuations shorten firms' life expectancy (because they increase...

Persistent link: https://www.econbiz.de/10008528536

Demand shocks and the cyclical behavior of the real wage: Some international evidence

Kandil, Magda - In: Journal of Applied Economics XIII (2010) May, pp. 135-158

The focus of this investigation is on the cyclical response of the real wage to demand shocks. This response differentiates the empirical validity of major New Keynesian explanations of business cycles. The empirical evidence, across industrial countries, highlights a moderate positive...

Persistent link: https://www.econbiz.de/10008568382

The Brevity and Violence of Contractions and Expansions

McKay, Alisdair; Reis, Ricardo - C.E.P.R. Discussion Papers - 2006

Early studies of business cycles argued that contractions in economic activity were briefer (shorter) and more violent (rapid) than expansions. This paper systematically investigates this claim and in the process discovers a robust new business cycle fact: expansions and contractions in output...

Persistent link: https://www.econbiz.de/10005114328

Worker Replacement

Menzio, Guido; Moen, Espen R - C.E.P.R. Discussion Papers - 2008

of unemployment and vacancies to negative shocks to the aggregate productivity of labor. …

Persistent link: https://www.econbiz.de/10005114426

Fair Wages in a New Keynesian Model of the Business Cycle

Danthine, Jean-Pierre; Kurmann, Andre - In: Review of Economic Dynamics 7 (2004) 1, pp. 107-142

We build a New Keynesian model of the business cycle with sticky prices and real wage rigidities motivated by efficiency wages of the gift exchange variety. Compared to a standard sticky price model, our Fair Wage model provides an explanation for structural unemployment and generates more...

Persistent link: https://www.econbiz.de/10005091025

The Joint Behavior of Hiring and Investment

Yashiv, Eran - C.E.P.R. Discussion Papers - 2011

This paper explores the dynamic behavior of investment and hiring within a unified framework, stressing their mutual … results, the fit is achieved without implying high adjustment costs. The interaction of hiring and investment costs is … significant and is negatively signed, implying complementarity between investment and hiring. There is a substantial role for …

Persistent link: https://www.econbiz.de/10008854549