imperfect competition. In equilibrium, unemployment emerges as the result of the market power exercised by insiders at the firm … countercyclical unemployment rate, in a way qualitatively consistent with US data. …

We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications … for the unemployment-inflation trade-off and for the conduct of monetary policy. We proceed in two steps. We first leave … unemployment in the constrained efficient allocation. We then focus on the implications of alternative real wage setting mechanisms …

inflation and unemployment. Under some assumptions, that relation takes a form similar to that found in empirical applications … unemployment rate in the U.S. economy, even under the strong assumption of a constant natural rate of unemployment. …

model labor market frictions and unemployment explicitly. The present paper describes some of the essential ingredients and …

provides a natural interpretation for the dynamic inflation-unemployment relation found in the data. …

We reformulate the Smets-Wouters (2007) framework by embedding the theory of unemployment proposed in Galí (2011a …,b). We estimate the resulting model using postwar U.S. data, while treating the unemployment rate as an additional observable … output gap. In addition, the estimated model can be used to analyze the sources of unemployment fluctuations. …