. In the context of such a model, we introduce a measure of unemployment and analyze its equilibrium behavior. We show that … a calibrated version of the model is capable of generating both a procyclical labor supply and a countercyclical … unemployment rate, in a way qualitatively consistent with the evidence. The model stresses the role of countercyclical markups in …

setting mechanisms for fluctuations in unemployment. We show the role of labor market frictions and real wage rigidities in … unemployment stabilization, and its dependence on labor market characteristics. We draw the implications for optimal monetary …We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications …

large reforms of unemployment insurance (UI) benefit levels in Austria. We document that wages are insensitive to UI benefit … sensitivities larger than $0.03. The insensitivity holds even among workers with low wages and high predicted unemployment duration …

particular, it provides a natural interpretation for the dynamic inflation--unemployment relation found in the data …

We reformulate the Smets-Wouters (2007) framework by embedding the theory of unemployment proposed in Galí (2011a …,b). We estimate the resulting model using postwar U.S. data, while treating the unemployment rate as an additional observable … variable. Our approach overcomes the lack of identification of wage markup and labor supply shocks highlighted by Chari, Kehoe …

model labor market frictions and unemployment explicitly. The present paper describes some of the essential ingredients and …

inflation and unemployment. Under some assumptions, that relation takes a form similar to that found in empirical applications … unemployment rate in the U.S. economy, even under the strong assumption of a constant natural rate of unemployment …