unemployment is shown to be socially costly. The paper notes that a tax on revenue of the incumbent firms can be welfare improving …

averse agents, capital and a labor-leisure choice has the ability to match all moments of the ac- tual US-unemployment rate … be unable to generate the observed fuctuations in unemployment rates and give the reason for their failure …

response of wages to high unemployment can pose adjustment problems. We address the issue using extensive simulations of an …, unique equilibrium unemployment rate but with relatively slow convergence dynamics. The interaction between unemployment … deterministic and stochastic simulations. Resulting impulse-responses are analysed, as well as the distribution of unemployment …

rejection margin and, thus, the unemployment rate. Moreover, the effects are bigger for those countries with generous … unemployment benefits. This framework, thus, provides an explanation for the observation that European unemployment rates increased … during the last 2/3 decades and the US unemployment rate did not. We also analyze the role of turbulence. …