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We consider optimal monetary policy in a model that integrates credit frictions in the standard New Keynesian model with sticky prices and wages as well as adjustment costs of capital. Different from traditional models with credit frictions such as Carlstrom and Fuerst (1998), the model is able...
Persistent link: https://www.econbiz.de/10012993022
This paper studies a two-region model in which unemployment, education decisions and interregional migration are … endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are … change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment …
Persistent link: https://www.econbiz.de/10012766901
taxation. In addition, the appearance of equilibrium unemployment also provides an incentive for the government to directly tax …
Persistent link: https://www.econbiz.de/10012768264
unemployment insurance scheme. We show that such immigration can create a negative immigration surplus due to adverse effects on …
Persistent link: https://www.econbiz.de/10012770182
Empirical evidence reveals that unemployment tends to increase property crime but that it has no effect on violent …. Unemployment increases the relative attractiveness of large and less violent gangs engaging more in property crime …
Persistent link: https://www.econbiz.de/10012773601
unemployment, even after controlling for the endogeneity of court activity. The results have potentially important policy …
Persistent link: https://www.econbiz.de/10012779784
This paper investigates regional or international transfers as a means to prevent immigration into unemployment. We … analyze a two-country model with free migration in which the rich country is characterized by minimum wage unemployment … stronger productivity growth in the poor country, reducing both migration flows and unemployment in the rich country. This …
Persistent link: https://www.econbiz.de/10012779814
The path breaking work of Card and Krueger (1993), showing higher minimum wage can increase employment turned the age-old conventional wisdom on its head. This paper demonstrates that this apparently paradoxical result is perfectly plausible in a competitive general equilibrium production...
Persistent link: https://www.econbiz.de/10012835193
This article analyzes the behavioral effects of unemployment benefits (UB) and it characterizes their optimal level … decrease the duration in unemployment. Extensive numerical simulations indicate that the relationship between the level of the …
Persistent link: https://www.econbiz.de/10012915499
We derive a sufficient statistics optimal income tax formula in a general model that incorporates unemployment and … resembles a Negative Income Tax than an Earned Income Tax Credit relative to the case where unemployment and wage responses are …
Persistent link: https://www.econbiz.de/10012943389