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A Three State Model of Worker Flows in General Equilibrium

Krusell, Per - 2009

We develop a simple model featuring search frictions and a nondegenerate labor supply decision along the extensive margin. The model is a standard version of the neoclassical growth model with indivisible labor with idiosyncratic shocks and frictions characterized by employment loss and...

Persistent link: https://www.econbiz.de/10012463398

Implicit Contracts, Labor Mobility and Unemployment

Arnott, Richard J. - 1987

information establishes that any consistent explanation for worksharing, layoffs, severance pay, quits and unemployment must focus …

Persistent link: https://www.econbiz.de/10012476752

Sorting Models of Labor Mobility, Turnover, and Unemployment

Viscusi, W. Kip - 1979

direction and convexity of the age-unemployment relationship and the impact of experience on turnover and wages. Actions taken … when unemployed have an important impact on equilibrium turnover rates, unemployment rates, and the work history of the … pool of unemployed. The sorting model is used to analyze racial differences in youth unemployment and major empirical …

Persistent link: https://www.econbiz.de/10012478777

Labor Mobility Within Currency Unions

Farhi, Emmanuel - 2014

We study the effects of labor mobility within a currency union suffering from nominal rigidities. When the demand shortfall in depressed region is mostly internal, migration may not help regional macroeconomic adjustment. When external demand is also at the root of the problem, migration out of...

Persistent link: https://www.econbiz.de/10012458559

Firm-Specific Capital and the New-Keynesian Phillips Curve

Woodford, Michael - 2005

A relation between inflation and the path of average marginal cost (often measured by unit labor cost) implied by the Calvo (1983) model of staggered pricing --- sometimes referred to as the "new-Keynesian Phillips curve"--- has been the subject of extensive econometric estimation and testing....

Persistent link: https://www.econbiz.de/10012467536

Optimal Stabilization Policy When Wages and Prices are Sticky : The Case of a Distorted Steady State

Benigno, Pierpaolo - 2004

Erceg et al. (2000) show that when both wages and prices are sticky, maximization of expected utility is equivalent to minimizing a loss function with three terms, involving measures of the variability of wage inflation, price inflation and the output gap respectively. Here we generalize their...

Persistent link: https://www.econbiz.de/10012467850

Monetary Discretion, Pricing Complementarity and Dynamic Multiple Equilibria

King, Robert G. - 2003

In a plain-vanilla New Keynesian model with two-period staggered price-setting, discretionary monetary policy leads to multiple equilibria. Complementarity between the pricing decisions of forward-looking firms underlies the multiplicity, which is intrinsically dynamic in nature. At each point...

Persistent link: https://www.econbiz.de/10012468768

Optimal Interest-Rate Rules : II. Applications

Giannoni, Marc P. - 2003

In this paper we calculate robustly optimal monetary policy rules for several variants of a simple optimizing model of the monetary transmission mechanism with sticky prices and/or wages. We discuss representations of optimal policy both in terms of interest-rate feedback rules that generalize...

Persistent link: https://www.econbiz.de/10012469283

Optimal Interest-Rate Rules : I. General Theory

Giannoni, Marc P. - 2003

This paper proposes a general method for deriving an optimal monetary policy rule in the case of a dynamic linear rational-expectations model and a quadratic objective function for policy. A commitment to a rule of the type proposed results in a determinate equilibrium in which the responses to...

Persistent link: https://www.econbiz.de/10012469284

Monetary Shocks in Models with Inattentive Producers

Alvarez, Fernando - 2014

We study models where prices respond slowly to shocks because firms are rationally inattentive. Producers must pay a cost to observe the determinants of the current profit maximizing price, and hence observe them infrequently. To generate large real effects of monetary shocks in such a model the...

Persistent link: https://www.econbiz.de/10012457849