. We use a New Keynesian model with unemployment to predict the effects of different labor market institutions on … theory. While labor market institutions have a large effect on output volatility, they do not seem to have much of an effect …

We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms …

This paper provides some of the first empirical evidence on the psychological impact of past unemployment. Using eleven … lower the greater has been the past experience of unemployment. In this sense, unemployment scars. However, an interaction … term between current and past unemployment attracts a positive coefficient. This suggests a habituation effect whereby the …

whereby unemployment affects investment and growth. The model generates a growth unemployment rate trade-off. A reduced … propensity to save raises growth but it also raises the unemployment rate because of induced technological progress. This … unemployment affects income distribution; introduction of a Phillips curve and inflation effects; and introduction of demand growth …

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

quantitatively underestimates the correlation of structural unemployment rates across countries. This mirrors the well-known finding … by Shimer (2005) by which thestandard search-and-matching model predicts too small fluctuations of unemployment rates …

. Alternatively, it is shown here how wage stickiness may bring unemployment fluctuations into a New-Keynesian model. Using a Bayesian … the two models and both provide a good empirical fit, with the crucial difference that our model delivers unemployment … fluctuations. Thus, second-moment statistics of the US rate of unemployment are replicated reasonably well in our proposed New …

cycles. Economic Theory, 12(3):583-597]. The aim of this article is to show that financing constraints can substantially …