We set up and estimate a structural unobserved components open economy model for the rate of unemployment and the real … factors. Thus, the results indicate that the dramatic changes in the Swedish unemployment rate during the 1990s mainly was a … inflation is found to be quite sensitive to the unemployment gap. An increase in cyclical unemployment by 1 percentage point …

In this paper we study 2-state Markov switching VAR models of monthly unemployment and inflation for three countries … with high or low unemployment volatility. We find that MS-VAR models seem to provide a better description of the data than … variance in unemployment. In the U.S. case we find that the variance of unemployment is lower in the low inflation regime than …

rate in recent years reflects a structural development, but that the low levels of unemployment may be a mainly cyclical …

I show that individuals whose unemployment risk tends to increase more when local home prices fall optimally invest … increase in the covariance between individually estimated unemployment risks and local home prices implies an average increase …

unemployment duration, which is consistent with the theory that individuals with financial buffers are able to search for new …This study examines how the financial buffer of unemployed individuals affects the duration of their unemployment and …

intensive and extensive margin of labor supply? What are the spillover effects of financial market disturbances to unemployment … open economy ; DSGE ; financial frictions ; labor market frictions ; unemployment …

This paper shows how uninsurable unemployment risk is crucial to qualitatively and quantitatively match macro responses … behaviors, triggering a fall in aggregate demand and supply. These precautionary behaviors increase the unemployment risk of the … imperfectly insured households, who strengthen precautionary saving. When the feedback loop between unemployment risk and …

I evaluate the welfare performance of a target for the level of nominal GDP in a New Keynesian model with unemployment …