Fluctuations in prices of Swedish exports to five countries are investigated in this paper. The authors test whether there are systematic differences between prices to different markets and whether relative export prices are affected by macroeconomic conditions in destination countries. The test...

In an attempt to move beyond the purchasing power parity hypothesis, this paper addresses two issues. The first concerns the causes of movements in real exchange rates. In contrast to the typical result, supply shocks are found to dominate the long-run variance decompositions for each of the...

The authors examine alternative systems of financing unemployment insurance benefits in an economy with wage-sett ing unions, where, as in some Nordic countries, each union runs its o wn unemployment insurance system. It is shown that a higher lump-sum grant to the union's unemployment insurance...

In this paper we introduce a general equilibrium model of search unemployment that incorporates absence from work as a distinct labor force state. Absenteeism is driven by random shocks to the value of leisure that are private information to the workers. Firms maximize profits while recognizing...