Bhattacharya, J.; Chankraborty, S. - Tilburg University, Center for Economic Research - 2003
into their models, and (iii) explain cross country di.erences in output and employment.We present an overlapping … frictions have a multiplier effect on economic activity, by directly a.ecting investment and indirectly through the unemployment … rate.The labor market friction, on the other hand, a.ects unemployment in the short- and long-run but has only a short …