Narrow search
Showing 1 - 10 of 779
Cover Image
Tariffs in an Economy with Incomplete Markets and Unemployment
Fernández, Raquel - 2011
This paper examines the optimal labor contract in a small open economy with incomplete markets under international price uncertainty. The effect on employment, wages, and profits of different realizations of the state of nature is studied and agents' preferences concerning the implementation of...
Persistent link: https://www.econbiz.de/10013124657
Cover Image
Credit Market Imperfections and Persistent Unemployment
Acemoglu, Daron - 2021
This paper develops the thesis that credit market frictions may be an important contributor to high unemployment in … market imperfections, so unemployment rises and remains high for an extended period. The data show that there has not been … cause of the increase in European unemployment, they may have played some role in limiting European employment growth …
Persistent link: https://www.econbiz.de/10013240945
Cover Image
Okun's Law : Fit at Fifty?
Ball, Laurence - 2013
This paper asks how well Okun's Law fits short-run unemployment movements in the United States since 1948 and in twenty … the unemployment rate - varies substantially across countries. This variation is partly explained by idiosyncratic …
Persistent link: https://www.econbiz.de/10013089022
Cover Image
Optimal Price Indices for Targeting Inflation Under Incomplete Markets
Anand, Rahul - 2011
In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating the flexible price equilibrium. In this paper, we develop a two-sector two-good closed economy new Keynesian model to study the optimal choice of price index in markets with...
Persistent link: https://www.econbiz.de/10013133080
Cover Image
On the Pricing of Intermediated Risks : Theory and Application to Catastrophe Reinsurance
Froot, Kenneth - 2010
We model the equilibrium price and quantity of risk transfer between firms and financial intermediaries. Value-maximizing firms have downward sloping demands to cede risk, while intermediaries, who assume risk, provide less-than-fully-elastic supply. We show that equilibrium required returns...
Persistent link: https://www.econbiz.de/10013135141
Cover Image
Traded and Nontraded Goods Prices, and International Risk Sharing : An Empirical Investigation
Corsetti, Giancarlo - 2011
Accounting for the pervasive evidence of limited international risk sharing is an important hurdle for open-economy models, especially when these are adopted in the analysis of policy trade-offs likely to be affected by imperfections in financial markets. Key to the literature is the evidence,...
Persistent link: https://www.econbiz.de/10013119607
Cover Image
Credit Shocks and Aggregate Fluctuations in an Economy with Production Heterogeneity
Khan, Aubhik - 2011
We study the cyclical implications of credit market imperfections in a calibrated dynamic, stochastic general equilibrium model wherein firms face persistent shocks to aggregate and individual productivity. In our model economy, optimal capital reallocation is distorted by two frictions:...
Persistent link: https://www.econbiz.de/10013121072
Cover Image
Customer Capital
Gourio, Francois - 2011
Firms spend substantial resources on marketing and selling. Interpreting this as evidence of frictions in product markets, which require firms to spend resources on customer acquisition, this paper develops a search theoretic model of firm dynamics in frictional product markets. Introducing...
Persistent link: https://www.econbiz.de/10013122655
Cover Image
Reconsidering the Costs of Business Cycles with Incomplete Markets
Atkeson, Andrew - 2011
correlation across individuals in the unemployment risk that they face. We then use asset price data to argue that in an …
Persistent link: https://www.econbiz.de/10013124598
Cover Image
Inequality, Human Capital Formation and the Process of Development
Galor, Oded - 2011
Conventional wisdom about the relationship between income distribution and economic development has been subjected to dramatic transformations in the past century. While classical economists advanced the hypothesis that inequality is beneficial for growth, the neoclassical paradigm dismissed the...
Persistent link: https://www.econbiz.de/10013124856