generate procyclical movements in job vacancies and insufficient volatility in the ratio of vacancies to unemployment. When …

data. It is found that the model with Nash bargaining wage setting rule fails to replicate the volatility of unemployment … and vacancies observed in data, as shown in Shimer(2005) using the model without capital …

unemployment and the volatility of output. Taxing job destruction the opposite effects. …

A number of studies have documented a reduction in aggregate macroeconomic volatility beginning in the early 1980s … significant heterogeneity in the timing and magnitude of the state-level volatility reductions. In fact, some states experience no … statistically-significant reduction in volatility. We then exploit this cross-sectional heterogeneity to evaluate three hypotheses …