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 …

embedded in the real business cycles model with capital, risk-averse agents, and lack of private insurance against unemployment … data. It is found that the model with Nash bargaining wage setting rule fails to replicate the volatility of unemployment …

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