unemployment and a positively-sloped Beveridge curve. This paper presents a calibrated model which succeeds at generating … countercyclical unemployment and a negatively-sloped Beveridge curve despite the presence of a participation margin. …

most of the key variables, as well as the negative co-variation of unemployment and vacancies. It offers a workable …

, selective survey of the literature. Four fundamental questions are explored: how are unemployment, job vacancies, and employment …

This paper illustrates why fiscal policy becomes more effective as unemployment rises in recessions. The theory is … based on the equilibrium unemployment model of Michaillat (forthcoming), in which jobs are rationed in recessions. Fiscal …; therefore fiscal policy reduces unemployment effectively. Formally the fiscal multiplier—the reduction in unemployment rate …

This paper models unemployment as the result of matching frictions and job rationing. Job rationing is a shortage of … returns to labor. During recessions, job rationing is acute, driving the rise in unemployment, whereas matching frictions … contribute little to unemployment. Intuitively, in recessions jobs are lacking, the labor market is slack, recruiting is easy and …

This article is based on a paper that models unemployment as the result of matching frictions and job rationing. Job … diminishing marginal returns to labor. During recessions, job rationing is acute, driving the rise in unemployment, whereas … matching frictions contribute little to unemployment. Intuitively, in recessions jobs are lacking, the labor market is slack …

. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows …

This paper characterizes optimal unemployment insurance (UI) over the business cycle using a model of equilibrium … unemployment in which jobs are rationed in recession. It offers a simple optimal UI formula that can be applied to a broad class of … equilibrium unemployment models. In addition to the usual statistics (risk aversion and micro-elasticity of unemployment with …

In this paper we study the contribution of inflows and outflows to the dynamics of unemployment in three European … significance subsided again in the late 1990s and 2000s. In France the dynamics of unemployment are driven virtually entirely by …