We focus on the equilibrium unemployment rate as a parameter implied by a dynamic aggregate model of wage- and price … setting. The equilibrium unemployment rate depends on institutional labour market institutions through mark-up coefficients …. Compared to existing studies, the resulting final equation for unemployment has richer dynamic structure. The empirical …

market regularities and (ii) macroeconomic dynamics (long-term rates of growth, GDP uctuations, unemployment rates …

It has been noted that the search and matching model cannot account for the observed unemployment fluctuations. Gertler …

level of frictional unemployment as a statistical feature of a decentralized labor market. Shocks to the economy can produce … short-run equilibrium involuntary unemployment arising from unfulfilled expectations. Even after agents align their … negative shock to demand can result in higher levels of equilibrium unemployment. In this way the model exhibits a particular …

This paper studies the role of labor market institutions on unemployment and on the cyclical properties of job flows …. We construct an intertemporal general equilibrium model with search unemployment and endogenous job turnover, and examine … the consequences of introducing an unemployment benefit, a firing cost and a downward wage rigidity. The model is able to …