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The output gap, the labor wedge, and the dynamic behavior of hours
Sala, Luca; Söderström, Ulf; Trigari, Antonella - 2010
We use a standard quantitative business cycle model with nominal price and wage rigidities to estimate two measures of economic ineffciency in recent U.S. data: the output gap - the gap between the actual and effcient levels of output - and the labor wedge - the wedge between households'...
Persistent link: https://www.econbiz.de/10010320744
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Macroeconomic shocks and racial labour market differences in the U.S.
De, Kuhelika; Compton, Ryan A.; Giedeman, Daniel C.; … - 2019
Using 136 United States macroeconomic indicators from 1973 to 2017, and a factor augmented vector autoregression (FAVAR) framework with sign restrictions, we investigate the effects of three structural macroeconomic shocks - monetary, demand, and supply - on the labour market outcomes of black...
Persistent link: https://www.econbiz.de/10012157899
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A single monetary policy for heterogeneous labour markets : the case of the euro area
Gomes, Sandra; Jacquinot, Pascal; Lozej, Matija - 2023
Differences in labour market institutions and regulations between countries of the monetary union can cause divergent responses even to a common shock. We augment a multi-country model of the euro area with search and matching framework that differs across Ricardian and hand-to-mouth households....
Persistent link: https://www.econbiz.de/10013492935
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Financial frictions : micro vs macro volatility
Lee, Seungcheol; Luetticke, Ralph; Ravn, Morten O. - 2021
We introduce frictional financial intermediation into a HANK model. Households are subject to idiosyncratic and aggregate risk and smooth consumption through savings and consumer loans intermediated by banks. The banking friction introduces an endogenous countercyclical spread between the...
Persistent link: https://www.econbiz.de/10012705511
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Financial frictions : micro vs. macro volatility
Faccini, Renato; Lee, Seungcheol; Luetticke, Ralph; … - 2024
consistent with the data. Banking regulation, while stabilizing at the aggregate level, may induce volatility at the household …
Persistent link: https://www.econbiz.de/10014480275
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Deflationary financial shocks and inflationary uncertainty shocks : an SVAR investigation
De Santis, Roberto A.; Van der Veken, Wouter - 2022
What are the economic implications of financial and uncertainty shocks? We show that financial shocks cause a decline in output and goods prices, while uncertainty shocks cause a decline in output and an increase in goods prices. In response to uncertainty shocks, firms increase their markups,...
Persistent link: https://www.econbiz.de/10013373603
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Labor market participation, unemployment and monetary policy
Campolmi, Alessia; Gnocchi, Stefano - 2011
paper is threefold: first, we show that the model provides a good fit for employment and unemployment volatility, as well as … participation volatility and its correlation with output for US data. Second, we show that in such a model, and contrary to a model … volatility of employment and unemployment. Finally, we show the role of search costs in shaping those results. …
Persistent link: https://www.econbiz.de/10010322472
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Persistence and nominal inertia in a generalized Taylor economy: How longer contracts dominate shorter contracts
Dixon, Huw; Kara, Engin - 2007
We develop the Generalized Taylor Economy (GTE) in which there are many sectors with overlapping contracts of di§erent lengths. In economies with the same average contract length, monetary shocks will be more persistent when longer contracts are present. Using the Bils-Klenow distribution of...
Persistent link: https://www.econbiz.de/10010322772
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The optimal stability-oriented monetary policy: Optimal monetary policy under low trend inflation
Ascari, Guido; Ropele, Tiziano - 2004
In this paper we generalise the standard optimal monetary policy literature as in Galí (2003) to the case of positive trend inflation. We present a simple framework that provides straightforward analytical results directly comparable with the standard case. Optimal monetary policy is strongly...
Persistent link: https://www.econbiz.de/10010326131
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Monetary persistence and the labor market: A new perspective
Lechthaler, Wolfgang; Merkl, Christian; Snower, Dennis J. - 2010
model; incorporating labor market frictions in the form of hiring and firing costs. We show that such a model is able to … sluggish. Job creation and job destruction are negatively correlated. And the volatility of unemployment is much larger than in …
Persistent link: https://www.econbiz.de/10010332774