Shimer, Robert; Alvarez, Fernando - National Bureau of Economic Research (NBER) - 2008
unemployment (moving to a new labor market or waiting for labor market conditions to improve) and inactivity (enjoying leisure …This paper extends Lucas and Prescott's (1974) search model to develop a notion of rest unemployment. The economy … evaluate the model. Quantitatively, we find that in the U.S. economy many more people may be in rest unemployment than in …