In the spirit of Dornbusch [1976], the overshooting of the nominal exchange rate following monetary innovations accounts for the huge observed volatilities of nominal exchange rates since the collapse of the Bretton Woods system. This paper quantitatively assesses this proposal in the New Open...

We extend McCall?s [1970] job search model by explicitly integrating life-cycle features and retirement decisions. Using simulations, we show that the effective tax on continued activity caused by the French social security system in conjunction with the generosity of unemploymentn benefits for...