that on aggregate about 1/3 of the increase in Spanish unemployment can be traced back to high household debt levels. … debt, also government debt and corporate debt are in some countries at levels not seen before. While there is a common … agreement that these high debt levels are not sustainable there is fewer consensus about the effect of changes in debt and …

intertemporal welfare gain, even though unemployment increases strongly in the short run. A 50% haircut of foreign debt … a highly indebted open economy. In contrast to the standard open economy framework, search unemployment and wage …’s production side and on welfare, but not on its stock of foreign debt and the country specific risk premium, and large part of the …

unemployment and its underlying duration distribution. We develop an analytically and computationally tractable stochastic … equilibrium model with heterogenous labor markets. In this model three different types of unemployment arise: search, rest and … reallocation unemployment. We document new evidence on unemployed workers’ gross occupational mobility and use it to calibrate the …

equilibrium model of wage dynamics and unemployment. The model is developed under the assumption of worker mobility, so that … Beaudry and DiNardo (1991). We solve for the dynamics of wages and unemployment, and show that real wages do not necessarily … to match actual unemployment and wage series. We also show that equal treatment follows in our model from the assumption …

downward rigidity, and magnifying the response of unemployment to negative shocks. We also consider layoffs and show that for a …

This paper investigates the long-run effects of public debt and inflation on economic growth. Our contribution is both … over the 1965-2010 period, we find significant negative long-run effects of public debt and inflation on growth. Our … results indicate that, if the debt to GDP ratio is raised and this increase turns out to be permanent, then it will have …

I analyze how lack of commitment affects the maturity structure of sovereign debt. Governments balance benefits of …-term debt affects default and rollover decisions by subsequent policy makers. The equilibrium maturity structure is shaped by … revenue losses on inframarginal units of debt that reflect the price impact of these decisions. The model predicts an interior …

What is an optimal or a sustainable external debt - for a country, region or sector? How should one monitor and … evaluate debt to preclude a crisis? We use stochastic optimal control/dynamic programming to derive an optimal debt. The … explain the implications of DP. An explicit example is the US Agricultural debt crisis. …