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Welfare Gains from Monetary Commitment in a Model of the Euro-Area

Levine, Paul; McAdam, Peter; Pearlman, Joseph - Society for Computational Economics - SCE - 2006

This paper sets out first, to quantify the stabilization gains from commitment in terms of household welfare and second …, to examine how commitment to an optimal or approximately optimal rule can be sustained as an equilibrium in which … commitment -- as much as a $5-6\%$ permanent increase in consumption. We also find that a simple optimized commitment rule with …

Persistent link: https://www.econbiz.de/10005537384

Labor Taxation, Matching and Shocks in the New Keynesian Model

Vanhala, Juuso - Society for Computational Economics - SCE - 2006

This paper studies the implications of labor taxation in determining the sensitivity of an economy to macroeconomic shocks. We construct a New Keynesian business cycle model with matching frictions of the labor market, where sluggish employment adjustment implies a key role for labor markets in...

Persistent link: https://www.econbiz.de/10005132603

Keynesian Dynamics and the Wage-Price Spiral:Estimating and Analyzing a Baseline Disequilibrium Approach

Semmler, W.; Chen, P.; Chiarella, C. - Society for Computational Economics - SCE - 2005

In this paper, we reformulate the theoretical baseline DAS-AD model of Asada, Chen, Chiarella and Flaschel (2004) to allow for its somewhat simplified empirical estimation. The model now exhibits a Taylor interest rate rule in the place of an LM curve and a dynamic IS curve and dynamic...

Persistent link: https://www.econbiz.de/10005132651

Persistence, Propagation and On-the-Job Search

Krause, Michael; Lubik, Thomas A. - Society for Computational Economics - SCE - 2005

Standard business cycle models often have difficulty matching salient stylized facts such as hump-shaped responses to shocks or persistence. This is mainly due to the lack of a strong endogenous propagation mechanism. In this paper we demonstrate that a real business cycle with a labor market...

Persistent link: https://www.econbiz.de/10005132694

Evaluating Business Cycle Models with Labor Market Search

Hussey, Robert M. - Society for Computational Economics - SCE - 2001

Incorporating labor market search in general equilibrium models has been shown to generate realistic dynamics in employment, job creation, and job destruction and to increase the magnitude and persistence of the impact of productivity shocks on output. This paper studies the extent to which the...

Persistent link: https://www.econbiz.de/10005132866

Labor Market Search, Inflation and Emloyment Dynamics

Kamber, Günes; Boudaya, Chahnez - Society for Computational Economics - SCE - 2006

This paper tries to assess which kind of real rigidities can enhance our understanding of inflation and labor market dynamics in a dynamic general equilibrium model with capital and labor market frictions and nominal price rigidities. We particularly introduce real wage rigidities through...

Persistent link: https://www.econbiz.de/10005342898

On Artificial Structural Unemployment

Dudek, Maciej K.; Handlowa, ówna - Society for Computational Economics - SCE - 2006

Above market clearing wages are shown to prevail as an outcome of a game in which employers possess and employees lack the ability to coordinate. It is established in a monopolistically competitive framework that it may be optimal for individual firms to coordinate and restrict entry of indirect...

Persistent link: https://www.econbiz.de/10005342907

Unemployment, Capital and Hours: On the quantitative performance of a DSGE

Jung, Philip - Society for Computational Economics - SCE - 2006

This paper shows that the standard Mortensen-Pissarides framework embedded in a RBC macroeconomic model with risk averse agents, capital and a labor-leisure choice has the ability to match all moments of the ac- tual US-unemployment rate and other labor market variables within tight bounds when...

Persistent link: https://www.econbiz.de/10005342913

Business Cycles in the Equilibrium Model of Labor Search and Self-Insurance

Nakajima, Makoto - Society for Computational Economics - SCE - 2006

This paper studies the cyclical properties the standard Mortensen-Pissarides model of labor search and matching embedded in the real business cycles model with capital, risk-averse agents, and lack of private insurance against unemployment risk. The model enables a direct comparison between the...

Persistent link: https://www.econbiz.de/10005342947

A State-Level Analysis of the Great Moderation

Owyang, Michael T.; Piger, Jeremy; Wall, Howard J. - Society for Computational Economics - SCE; Federal … - 2006

A number of studies have documented a reduction in aggregate macroeconomic volatility beginning in the early 1980s. Using an empirical model of business cycles, we extend this line of research to state-level employment data, find significant heterogeneity in the timing and magnitude of the...

Persistent link: https://www.econbiz.de/10005342964