The legal regulations require the minimum wage in Germany to be adjusted biennially which gives rise to a policy discontinuity. From the perspective of rational expectations models, such policy features render standard local approximation techniques infeasible. The paper presents a stylised...

Angesichts der hohen Arbeitslosigkeit wird in der wirtschaftswissenschaftlichen Literatur die Frage diskutiert, inwieweit Lohnzurückhaltung auf Arbeitnehmerseite zu einer Beschäftigungsausweitung beitragen kann. Wie sind die zugrundeliegenden theoretischen Konzepte zu beurteilen?

We discuss how cross-country unemployment insurance can be used to improve international risk sharing. We use a two-country business cycle model with incomplete financial markets and frictional labor markets where the unemployment insurance scheme operates across both countries. Cross-country...

We characterize optimal monetary policy in a New Keynesian search-and-matching model where multiple-worker firms satisfy demand in the short run by adjusting hours per worker. Imperfect product market competition and search frictions reduce steady state hours per worker below the efficient...