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Levine, David K. - 2010

More advanced technologies demand higher degrees of specialization - and longer chains of production connecting raw inputs to final outputs. Longer production chains are subject to a "weakest link" effect: they are more fragile and more prone to failure. Optimal chain length is determined by the...

Persistent link: https://www.econbiz.de/10013135410

The Cyclical Behavior of Equilibrium Unemployment and Vacancies in the Us and Europe

Justiniano, Alejandro - 2012

-Saxon countries (the US and the UK), two Continental European countries (France and Germany) and two Scandinavian countries (Norway … probabilities observed in US, with mixed success in Europe. In contrast, matching shocks and job destruction shocks play a larger … role in most European countries relative to the US …

Persistent link: https://www.econbiz.de/10013114011

Animal Spirits, Financial Crises and Persistent Unemployment

Farmer, Roger E. A. - 2011

This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of capital may be unbounded above. I argue that this property is an important feature of any rational-agent explanation of a financial crisis, since for the expansion phase of the...

Persistent link: https://www.econbiz.de/10013123693

Does European Unemployment Prop Up American Wages?

Davis, Donald R. - 2011

We consider trade between a flexible wage America and a rigid real wage Europe. In a benchmark case, a move from autarky to free trade doubles the European unemployment rate, while it raises the American unskilled wage to the high European level. Entry of the unskilled South to world markets...

Persistent link: https://www.econbiz.de/10013125263

Labor Market, Financial Crises and Inflation : Jobless and Wageless Recoveries

Calvo, Guillermo A. - 2012

This paper uses a sample of 116 recession episodes in developed and emerging market economies to compare the labor-market recovery during financial crises with that of other recession episodes. It documents two new stylized facts. First, labor-market recovery from financial crises is...

Persistent link: https://www.econbiz.de/10013099123

How Do Monetary and Fiscal Policy Interact in the European Monetary Union?

Canzoneri, Matthew B. - 2012

Formation of the Euro area raises new questions about the coordination of monetary and fiscal policy. Using a New Neoclassical Synthesis (NNS) model, we show that a common monetary policy, responding to area-wide aggregates, has asymmetric effects on countries within the union, depending on...

Persistent link: https://www.econbiz.de/10013100660

Over-Optimistic Official Forecasts in the Eurozone and Fiscal Rules

Frankel, Jeffrey A. - 2012

Why do countries find it so hard to get their budget deficits under control? Systematic patterns in the errors that official budget agencies make in their forecasts may play an important role. Although many observers have suggested that fiscal discipline can be restored via fiscal rules such as...

Persistent link: https://www.econbiz.de/10013102194

The Market Crash and Mass Layoffs : How the Current Economic Crisis May Affect Retirement

Coile, Courtney - 2010

Recent dramatic declines in U.S. stock and housing markets have led to widespread speculation that shrinking retirement …

Persistent link: https://www.econbiz.de/10013150735

The Role of Labor Market Changes in the Slowdown of European Productivity Growth

Dew-Becker, Ian L. - 2008

between the EU and US going back to 1980. This paper is about the strong negative tradeoff between productivity and employment …, productivity growth in the EU-15 has slowed while that in the United States has accelerated. But Europe's productivity growth … employment growth across countries and time. Our primary explanatory variables to explain both the revival of EU employment …

Persistent link: https://www.econbiz.de/10012772452

The Politics of 1992 : Fiscal Policy and European Integration

Persson, Torsten - 2007

The internal market in Europe will greatly increase the international mobility of resources. How will this affect fiscal policy in different countries? The first part of the paper considers taxation of capital in a two country model, where a democratically chosen government in each country...

Persistent link: https://www.econbiz.de/10012776951