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

creation in the private sector and unemployment. We also show that long-term unemployment depends on current and past values of … short-term unemployment and that this path-dependence fades away as soon as we reach time t-3. We interpret this result as …

allowing on-the-job search. We obtain that the elasticity of unemployment with respect to growth shrinks from 1.63 to 0 … search process than the unemployed. Thus, we show that, rather than contributing to unemployment, creative destruction …

on the model's failure to match the observed cyclical volatility of unemployment. Job creation in the model is influenced … elasticities are consistent with the evidence. Therefore explanations of the unemployment volatility puzzle have to preserve the … cyclical volatility of wages. I discuss some extensions of the model that can increase cyclical unemployment volatility through …

This paper tests whether aggregate matching is consistent with unemployment being mainly due to search frictions or due … with reference to the design of optimal unemployment insurance programs. …

Shimer (2005a) claims that the Mortensen-Pissarides search model of unemployment lacks an ampiflication mechanism … because it cannot generate the observed business cycle fluctuations in unemployment given labor productivity shocks of … correctly identify the shocks driving unemployment. Using a New- Keynesian framework with search unemployment, this paper …

, 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 …