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The Cyclicality of Search Intensity in a Competitive Search Model

Gomme, Paul; Lkhagvasuren, Damba - Department of Economics, Concordia University - 2013

these fluctuations very close to those seen in the data. The search cost function and the matching technology are intimately … elasticity of matches with respect to vacancies. Evidence in support of the model's prediction of procyclical search effort is … that are an order of magnitude too small. Introducing search effort of the unemployed brings the model's predictions for …

Persistent link: https://www.econbiz.de/10011188615

Worker Search Effort as an Amplification Mechanism

Gomme, Paul; Lkhagvasuren, Damba - Department of Economics, Concordia University - 2015

fluctuations and the size of rents to employment. Introducing endogenous job search effort reduces the strength of the trade …-off while bringing the model closer to the data. Ignoring worker search effort leads to a large upward bias in the elasticity of … matches with respect to vacancies. Merging the American Time Use Survey and the Current Population Survey, new evidence in …

Persistent link: https://www.econbiz.de/10011188616

The Cyclicality of Search Intensity in a Competitive Search Model

Gomme, Paul; Lkhagvasuren, Damba - Department of Economics, Concordia University - 2011

Reasonably calibrated versions of the Diamond-Mortensen-Pissarides search and matching model of unemployment … underpredict, by a wide margin, the volatility of vacancies, unemployment, and the vacancies-unemployment ratio - variables at the … are determined via competitive search (wage posting by firms along with directed search on the part of workers) rather …

Persistent link: https://www.econbiz.de/10009144134

The Return to Capital and the Business Cycle

Gomme, Paul; Ravikumar, B.; Rupert, Peter - Department of Economics, Concordia University - 2008

A widely cited failing of real business cycle models is their inability to account for the cyclical patterns of financial variables. Perhaps less well known is the fact that the return to capital and equity are identical in the neoclassical growth model. This paper constructs a measure of the...

Persistent link: https://www.econbiz.de/10004968087

The Return to Capital and the Business Cycle

Gomme, Paul; Ravikumar, B.; Rupert, Peter - Society for Economic Dynamics - SED - 2006

Real business cycle models have difficulty replicating the volatility of S&P 500 returns. This fact should not be surprising since the RBC theory suggests a measurement of the return of aggregate capital, not stock market returns. We construct a quarterly time series of the after-tax return to...

Persistent link: https://www.econbiz.de/10005048009

The Household Revolution: Childcare, Housework,and Female Labor Force Participation

Cardia, Emanuela; Gomme, Paul - Department of Economics, Concordia University - 2011

Over the twentieth century, the amount of time that married women devoted to working in the market increased dramatically. This paper explores the implications for the allocation of womens' time stemming from: (1) the durable goods revolution associated with the introduction of new technologies,...

Persistent link: https://www.econbiz.de/10009653125

Measuring the Welfare Costs of Inflation in a Life-cycle Model

Gomme, Paul - Department of Economics, Concordia University - 2008

In macroeconomics, life-cycle models are typically used to address exclusively life-cycle issues. This paper shows that modeling the life-cycle may be important when addressing public policy issues, in this case the welfare costs of inflation. In the representative agent model, the optimal...

Persistent link: https://www.econbiz.de/10004968084

Measuring the Welfare Costs of Inflation in a Life-cycle Model

Gomme, Paul - Department of Economics, Concordia University - 2012

In a neoclassical growth model with life-cycle households in which money is held to satisfy a cash-in-advance constraint, the optimal steady state inflation rate is not the Friedman rule -- it is in excess of $20\%$. Lump-sum, age-independent money injections twist and flatten the lifetime...

Persistent link: https://www.econbiz.de/10011161338

The return to capital and the business cycle

Gomme, Paul; Ravikumar, B.; Rupert, Peter - Federal Reserve Bank of Cleveland - 2006

Real business cycle models have difficulty replicating the volatility of S&P 500 returns. This fact should not be surprising since real business cycle theory suggests that the return to capital should be measured by the return to aggregate market capital, not stock market returns. We construct a...

Persistent link: https://www.econbiz.de/10005428417

Money and growth revisited

Gomme, Paul - Federal Reserve Bank of Minneapolis - 1991

Results in Lucas (1987) suggest that if public policy can affect the growth rate of the economy, the welfare implications of alternative policies will be large. In this paper, a stochastic, dynamic general equilibrium model with endogenous growth and money is examined. In this setting, inflation...

Persistent link: https://www.econbiz.de/10005372822