Kuo, Chun-Hung; Miyamoto, Hiroaki - School of Economics and Management, Kochi University of … - 2015
Focusing on both hiring and firing margins, this paper revisits effects of fiscal expansion on unemployment. We develop … job finding, separation, and unemployment rates to a government spending shock, obtained from estimating a structural VAR … model with the U.S. data. However, our model fails to capture the response of vacancies and the volatility of unemployment. …