Showing 1 - 10 of 15
Theoretical predictions of the impact of TFP growth on unemployment are ambiguous, and depend on the extent to which new technology is embodied in new jobs. We evaluate a model with embodied and disembodied technology, capitalization, and creative destruction effects by estimating the impact of...
Persistent link: https://www.econbiz.de/10005504604
This paper surveys recent work in equilibrium models of labor markets characterized by search and recruitment frictions and by the need to reallocate workers across productive activities. The duration of unemployment and jobs and wage determination are treated as endogenous outcomes of job...
Persistent link: https://www.econbiz.de/10005497772
This note shows that a big stock market crash, in the absence of central bank intervention, will be followed by a major recession one to four quarters later. I establish this fact by studying the forecasting ability of three models of the unemployment rate. I show that the connection between...
Persistent link: https://www.econbiz.de/10011083701
Central banks throughout the world predict inflation with new-Keynesian models where, after a shock, the unemployment rate returns to its so called 'natural rate’. That assumption is called the Natural Rate Hypothesis (NRH). This paper reviews a body of work, published over the last decade,...
Persistent link: https://www.econbiz.de/10011084150
We provide a joint account of the unemployment and labor force participation patterns of older male workers during the past half-century, and of the role of institutions that have shaped their employment experience. To do so, we build an equilibrium model with labor market frictions,...
Persistent link: https://www.econbiz.de/10011211447
In this paper we study the contribution of inflows and outflows to the dynamics of unemployment in three European countries, the United Kingdom, France and Spain. We compare performance in these three countries making use of both administrative and labour force survey data. We find that the...
Persistent link: https://www.econbiz.de/10005792231
Most dynamic stochastic general equilibrium models (DSGE) of the macroeconomy assume that labour is traded in a spot market. Two exceptions (Andolfatto [3], Merz [11]) combine the two-sided search model of Mortenson and Pissarides, [14], [13], [15] with a one-sector real business cycle model....
Persistent link: https://www.econbiz.de/10005124199
This Paper derives optimal employment contracts when workers are risk-averse and there are employment and unemployment risks. Without income insurance, consumption rises during employment and falls during unemployment. Optimal employment contracts offer severance compensation to smooth...
Persistent link: https://www.econbiz.de/10005124282
This paper uses a model with a continuum of equilibrium unemployment rates to explore the effectiveness of fiscal policy. The existence of multiple steady states is explained by a model of costly search and recruiting that leads to a situation of bilateral monopoly. Using this framework, I...
Persistent link: https://www.econbiz.de/10008567800
This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of capital may be unbounded above. I argue that this property is an important feature of any rational-agent explanation of a financial crisis, since for the expansion phase of the...
Persistent link: https://www.econbiz.de/10009147406