We propose that the natural rate of unemployment has an active role in the business cycle, in contrast to the … Phillips-curve framework of low---often extremely low---response of inflation to unemployment could be the result of fairly … most Phillips-curve studies, that conclude that inflation has little relation to unemployment. We suggest that the flat …

This paper studies how the thick market effect influences local unemployment rate fluctuations. The paper presents a … fluctuations in the local unemployment rates. Since larger cities attain the critical market size more frequently, they have … shorter unemployment cycles, lower peak unemployment rates, and lower mean unemployment rates. Our empirical tests are …

a burst of layoffs. Unemployment rises because jobs are hard to find, not because an unusual number of people are thrown … into unemployment …

This paper develops a model of unemployment fluctuations. The model keeps the architecture of the general … affects unemployment: with a higher aggregate demand, firms find more customers; this reduces the idle time of their employees … and thus increases their labor demand; and this reduces unemployment. We combine the predictions of the model and …

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 … output gap. In addition, the estimated model can be used to analyze the sources of unemployment fluctuations …

We propose a monetary model in which the unemployed satisfy the official US definition of unemployment: they are people ….e., unemployment is 'involuntary'). We integrate our model of involuntary unemployment into the simple New Keynesian framework with no … capital and use the resulting model to discuss the concept of the 'non-accelerating inflation rate of unemployment'. We then …

A number of authors have recently emphasized that the conventional model of unemployment dynamics due to Mortensen and …

Shimer (2005a) argues that the Mortensen-Pissarides equilibrium search model of unemployment explains only about 10% of …

than does consumption. At the same time, the model is consistent with a lack of secular movements in hours and unemployment …