This paper extends the utility-based welfare criterion developed by Woodford (2003) to a model with labour market search. We show how the central banker's concern for inflation stabilization depends on the average steady-state durations of unemployment and job vacancy

This paper examines the effects of introducing a non Walrasian labour market into the "New Neoclassical Synthesis" framework. A dynamic stochastic general equilibrium model is formulated, solved, and calibrated in order to evaluate its ability to replicate the main features of the Euro area...

This paper examines the effects of introducing a non Walrasian labour market into the "New Neoclassical Synthesis'' framework. A dynamic stochastic general equilibrium model is formulated, solved, and calibrated in order to evaluate its ability to replicate the main features of the Euro area...