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Unemployment in the European Union: A dynamic reappraisal

Karanassou, Marika; Sala, Héctor; Snower, Dennis J. - Institut für Weltwirtschaft (IfW) - 2003

This paper examines the movements in EU unemployment from two perspectives: (a) the NRU/NAIRU perspective, in which unemployment movements are attributed largely to changes in the long-run equilibrium unemployment rate and (b) the chain-reaction perspective, in which unemployment movements are...

Persistent link: https://www.econbiz.de/10010955891

Reciprocity and Matching Frictions

Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2010

We build a RBC endogenous separation matching model and introduce efficiency wages along the lines of Akerlof (1982). While the standard endogenous separation matching model reveals shortcomings in explaining correlations and volatilities jointly, this approach performs reasonably well along...

Persistent link: https://www.econbiz.de/10008635827

Capital, Endogenous Separations, and the Business Cycle

Roye, Björn van; Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2009

We implement capital in an endogenous separations New Keynesian matching model. In contrast to the vintage capital theory, we suggest a more general approach, such that workers have unrestricted access to a proportional share of the capital stock. We find that the introduction of capital...

Persistent link: https://www.econbiz.de/10008635829

Firing Tax vs. Severance Payment - An Unequal Comparison

Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2010

Empirical evidence indicates that lay-off costs consist of two elements, namely firing costs and severance payments. This paper investigates business cycle and steady state effects of firing costs and severance payments and discusses the differences. We find that severance payments imply a lower...

Persistent link: https://www.econbiz.de/10008466437

Staggered Wages, Sticky Prices, and Labor Market Dynamics in Matching Models

Neugebauer, Janett; Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2010

This paper investigates the role of staggered wages and sticky prices in explaining stylized labor market facts. We build on a partial equilibrium search and matching model and expand the model to a general equilibrium model with sticky prices and/or staggered wages. We show that the core model...

Persistent link: https://www.econbiz.de/10008541314

On the Introduction of Firing Costs

Ahrens, Steffen; Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2009

This paper provides a survey of the recent literature about firing costs and discusses the transmission channels of firing costs in a partial equilibrium context. In addition, we expand our analysis two types of firing costs in a New Keynesian model with purely endogenous separations. We further...

Persistent link: https://www.econbiz.de/10008531659

Extensive vs. Intensive Margin in Germany and the United States: Any Differences?

Merkl, Christian; Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2009

This papers analyzes the role of the extensive vis-à-vis the intensive margin of labor adjustment in Germany and the United States. The contribution is twofold. First, we provide an update of older U.S. studies and confirm the view that the extensive margin (i.e., the adjustment in the number...

Persistent link: https://www.econbiz.de/10008531660

Inflation Persistence and the Philips Curve Revisited

Karanassou, Marika; Snower, Dennis - Institut für Weltwirtschaft (IfW) - 2007

" - although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly … asserted that, in the context of the new Phillips curve (NPC), inflation is a jump variable. We argue that this "persistency … equilibrium setting (in which real variables not only affect inflation, but are also influenced by it), standard wage …

Persistent link: https://www.econbiz.de/10005700522

The Intensive Margin Puzzle and Labor Market Adjustment Costs

Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2011

This paper documents a puzzling fact, namely that there is a significant negative relation between employment protection legislation and the usage of the intensive margin of labor market adjustments. We then make use of a Real Business Cycle model and introduce search and matching frictions as...

Persistent link: https://www.econbiz.de/10009025168

What drives Endogenous Growth in the United States?

Wesselbaum, Dennis - Institut für Weltwirtschaft (IfW) - 2010

This paper estimates whether learning-by-doing effects or cleansing effects of recessions drive the endogenous component of productivity in the United States. Using Bayesian estimation techniques we find that external and internal learning-by-doing effects dominate. We find no evidence for...

Persistent link: https://www.econbiz.de/10008557213