Hiring is a costly activity reflecting firms' investment in their workers. Microdata show that hiring costs involve … optimal allocation of hiring activities. We outline a mechanism based on cyclical markup fluctuations, placing emphasis on … hiring frictions interacting with price frictions. This mechanism generates strong propagation and amplification of all key …

rates for Colombia for the period 1976 - 2012. The result is the first dataset capturing the evolution of vacancies for … between vacancies and unemployment with a structural change-an outward shift-around 1986. …

post more vacancies and to devote more resources to recruiting. This unemployment-vacancy tradeoff, governed by the …

news shock. The model also matches the empirical patterns of vacancies, labor force participation, hours, and job …

it delivers moderately procyclical average labor productivity and a large cyclical volatility of aggregate hours relative …

When hiring new workers, employers use a wide variety of different recruiting methods in addition to posting a vacancy …

individual stochastic discount factors. We prove that equity price volatility becomes arbitrarily large as the volatility of … aggregate output volatility falls. We propose a two-step spectral factorization method that permits closed-form solutions in the …