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Measuring the NAIRU with Reduced Uncertainty: A Multiple Indicator-Common Component Approach

Basistha, Arabinda; Startz, Richard - Society for Computational Economics - SCE - 2005

Standard estimates of the NAIRU or natural rate of unemployment are subject to considerable uncertainty. We show in … this paper that using multiple indicators to extract an estimated NAIRU cuts in half uncertainty as measured by variance …. The inclusion of an Okunâ€™s Law relation is particularly valuable. We estimate the NAIRU as an unobserved component in a …

Persistent link: https://www.econbiz.de/10005706288

Endogenous Labor Market Participation and the Business Cycle

Haefke, Christian; Reiter, Michael - Society for Computational Economics - SCE - 2006

Existing models of equilibrium unemployment with endogenous labor market participation are complex, generate procyclical unemployment rates, and suffer from the usual defects of matching models. We embed endogenous participation in a simple, tractable job market matching model, show analytically...

Persistent link: https://www.econbiz.de/10005537405

Persistence and Nominal Inertia in a Generalized Taylor Economy: How Longer Contracts Dominate Shorter Contracts

Kara, Engin; Dixon, Huw - Society for Computational Economics - SCE - 2005

n this paper we develop the Generalize Taylor Economy (GTE) in which there are many sectors with overlapping contracts of different lengths. We are able to show that even in economies with the same average contract length, monetary shocks will be more persistent when there are longer contracts....

Persistent link: https://www.econbiz.de/10005537478

The Microeconomics of Macroeconomic Asymmetries: Sectoral Driving Forces and Firm Level Characteristics

Korenok, Oleg; Mizrach, Bruce - Society for Computational Economics - SCE - 2004

There is now considerable evidence that business cycle variation in output and employment in the U.S. differs in expansions and contractions. We present nonparametric evidence that asymmetries are strongest in durable goods manufacturing. In a Markov switching framework, we find two leading...

Persistent link: https://www.econbiz.de/10005537608

On-the-job Search and Business Cycle Dynamics

Lubik, Thomas A.; Krause, Michael U. - Society for Computational Economics - SCE - 2004

We quantitatively assess the role of on-the-job search for labor market dynamics in a fully specified, real DSGE model with endogenous job creation and destruction. The model features heterogeneity of the productivity of firms, across which workers search, as well as heterogeneity of jobs within...

Persistent link: https://www.econbiz.de/10005537628

A politico-economic equilibrium of unemployment insurance with precautionary savings and liquidity constraint

Weitzenblum, Thomas - Society for Computational Economics - SCE - 2003

Persistent link: https://www.econbiz.de/10005537806

Employment Fluctuations with Downward Wage Rigidity

Costain, James; Jansen, Marcel - Society for Computational Economics - SCE - 2006

This paper considers a dynamic matching model with imperfectly observable worker effort as in Shapiro and Stiglitz (1994). In our economy the no-shirking condition endogenously imposes real wage rigidity on the matching market. This generates "contractual fragility" and inefficient separations...

Persistent link: https://www.econbiz.de/10005706170

Labor Demand Dynamics And the Structure of Adjustment Costs: Evidence From French Firms

Roys, Nicolas - Society for Computational Economics - SCE - 2006

This paper studies the dynamics of labor demand at the firm level. Recent studies emphasize the importance of non-convex components in the structure of hiring and firing costs in the form of either fixed or linear adjustment costs. Building from Cooper al. (2005) model and Rota (2004)...

Persistent link: https://www.econbiz.de/10005706192

Firm Dynamics with Infrequent Adjustment and Learning

Pinto, Eugenio - Society for Computational Economics - SCE - 2006

Recent empirical findings have emphasized post entry growth of survivors, as opposed to exit of inefficient and small firms, as the main source of growth over time in the average size of a cohort of entering firms. In this paper, as an explanation for the significant growth of survivors, we...

Persistent link: https://www.econbiz.de/10005706205

Employment stickiness in small manufacturing firms

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

Small firms often do not change their number of employees from year to year. This paper investigates the role of adjustment costs and indivisibility of labor in the employment stickiness of manufacturing firms with less than 75 employees. When small firms have to adjust employment in units of at...

Persistent link: https://www.econbiz.de/10005706206