percent of GDP generates output and unemployment multipliers respectively of about 1.2 per cent (at one year) and 0 … output multiplier whereas it can produce a realistic unemployment multiplier but only under a special parameterization …. Extending the model to strengthen the complementarity in preferences, to include unemployment benefits, real wage rigidity and …

productivity risk is greater than the value of unemployment insurance which provides (partial) insurance against employment risk …

in spending were common especially following unemployment. On average expectations about stock market prices and housing …

The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future … shocks do not systematically lead to more persistent unemployment than monetary policy shocks, so these cannot explain the … rising persistence of unemployment. Second, monetary and fiscal policies can account for only part of the evolving …

will be supplied. Will the unemployment rate, which has declined at roughly one percent per year, decline even faster from …-force participation rate? The paper develops a new and surprisingly simple method of calculating the growth rate of potential GDP over the … has profound implications for the Federal Reserve. The unemployment rate has declined rapidly, particularly within the …

-run unemployment. In the short run, however, the union raises current wages above the efficient level, in order to appropriate …-perfect equilibrium, not only is unemployment well above its efficient level, but the union wage also exhibits endogenous real stickiness …