We embed human capital-based endogenous growth into a New-Keynesian model with search and matching frictions in the … labor market and skill obsolescence from long-term unemployment. The model can account for key features of the Great … aggregate demand raises unemployment and the training costs associated with skill obsolescence. Lower employment hinders …

matching efficiency shock are the two key driving forces of unemployment fluctuations. Monetary policy that stabilizes the …This paper develops a New Keynesian model with search frictions in which generated frictional unemployment is … consistent with the time series of involuntary unemployment collected by the U.S. Bureau of Labor Statistics. Thus, it can shed …

real wage rigidities. -- Monetary policy ; real wage rigidity ; labor turnover costs ; unemployment ; tradeoff …

We investigate both theoretically and empirically how unemployment level and its growth affect future stock returns. We … find that both a higher unemployment rate and higher growth of unemployment positively predict future stock market returns … reinforce each other making stock returns exceptionally high in periods of high unemployment and high unemployment growth. Our …

model labor market frictions and unemployment explicitly. This chapter describes some of the essential ingredients and …

We construct a utility-based model of fluctuations, with nominal rigidities and unemployment, and draw its implications … for the unemployment-inflation trade- off and for the conduct of monetary policy. We proceed in two steps. We first leave … unemployment in the constrained efficient allocation. We then focus on the implications of alternative real wage setting mechanisms …

booms. This state dependence is essentially due to the time-variation in stochastic discounting that is needed to match the …

discounting, or myopia: they discount variables far into the future at higher rates than typically implied in the benchmark model … minimal estimated degrees of myopia. The results indicate that the empirical evidence for cognitive discounting may be …