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U.S. Inflation, Labor's Share, and the Natural Rate of Unemployment

Gordon, Robert J. - 1988

matters for stabilization policy is the rate of inflation, not the rate of wage change. This paper provides new estimates of … result in the paper is that wage changes do not contribute statistically to the explanation of inflation. Deviations in the … growth of labor cost from the path of inflation cause changes in labor's income share, and changes in the profit share in the …

Persistent link: https://www.econbiz.de/10012476483

The Active Role of the Natural Rate of Unemployment during Cyclical Recoveries

Hall, Robert E.; Kudlyak, Marianna - National Bureau of Economic Research - 2023

Phillips-curve framework of low---often extremely low---response of inflation to unemployment could be the result of fairly … most Phillips-curve studies, that conclude that inflation has little relation to unemployment. We suggest that the flat …

Persistent link: https://www.econbiz.de/10014436979

The Thick Market Effect on Local Unemployment Rate Fluctuations

Gan, Li - 2005

This paper studies how the thick market effect influences local unemployment rate fluctuations. The paper presents a model to demonstrate that the average matching quality improves as the number of workers and firms increases. Unemployed workers accumulate in a city until the local labor market...

Persistent link: https://www.econbiz.de/10012467437

Employment Efficiency and Sticky Wages : Evidence from Flows in the Labor Market

Hall, Robert E. - 2005

I consider three views of the labor market. In the first, wages are flexible and employment follows the principle of bilateral efficiency. Workers never lose their jobs because of sticky wages. In the second view, wages are sticky and inefficient layoffs do occur. In the third, wages are also...

Persistent link: https://www.econbiz.de/10012467502

The Natural Rate Hypothesis : An idea past its sell-by date

Farmer, Roger E.A. - 2013

Central banks throughout the world predict inflation with new-Keynesian models where, after a shock, the unemployment …

Persistent link: https://www.econbiz.de/10012459393

Solving the DMP Model Accurately

Petrosky-Nadeau, Nicolas - 2013

An accurate global algorithm is critical for quantifying the dynamics of the Diamond-Mortensen-Pissarides model. Loglinearization understates the mean and volatility of unemployment, overstates the unemployment-vacancy correlation, and ignores impulse responses that are an order of magnitude...

Persistent link: https://www.econbiz.de/10012459455

Aggregate Demand, Idle Time, and Unemployment

Michaillat, Pascal - 2013

This paper develops a model of unemployment fluctuations. The model keeps the architecture of the general-disequilibrium model of Barro and Grossman (1971) but takes a matching approach to the labor and product markets instead of a disequilibrium approach. On the product and labor markets, both...

Persistent link: https://www.econbiz.de/10012459836

Unemployment in an Estimated New Keynesian Model

Galí, Jordi - 2011

We reformulate the Smets-Wouters (2007) framework by embedding the theory of unemployment proposed in Galí (2011a,b). We estimate the resulting model using postwar U.S. data, while treating the unemployment rate as an additional observable variable. Our approach overcomes the lack of...

Persistent link: https://www.econbiz.de/10012461573

Involuntary Unemployment and the Business Cycle

Christiano, Lawrence J. - 2010

capital and use the resulting model to discuss the concept of the 'non-accelerating inflation rate of unemployment'. We then …

Persistent link: https://www.econbiz.de/10012462849

Minimally Altruistic Wages and Unemployment in a Matching Model

Rotemberg, Julio J. - 2008

This paper presents a model in which firms recruit both unemployed and employed workers by posting vacancies. Firms act monopsonistically and set wages to retain their existing workers as well as to attract new ones. The model differs from Burdett and Mortensen (1998) in that its assumptions...

Persistent link: https://www.econbiz.de/10012464892