This paper develops a theory characterizing the effects of fiscal policy on unemployment over the business cycle. The … theory is based on a model of equilibrium unemployment in which jobs are rationed in recessions. Fiscal policy in the form of … government spending on public-sector jobs reduces unemployment, especially during recessions: the fiscal multiplier …

. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows …

. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows …

same which knows more the precarious employment, the underemployment and the recurrent unemployment. Moreover, one observes …

that long-term unemployment is only weakly related to inflation depends on the assumption of linearity in the Phillips … curve. Specifically, once convexity is allowed for during the estimation process, long-term unemployment appears to have a … significant negative influence on wage inflation, whereas in a linear Phillips curve model it is only the short-term unemployment …

This paper proposes an empirical method for estimating a long-run trend for the unemployment rate that is grounded in … the modern theory of unemployment. I write down an unobserved components model and identify the cyclical and trend … components of the underlying unemployment flows, which in turn imply a time varying estimate of the unemployment trend, the …