endogenous firing as well as a short-time work decision. In recessions, short-time work reduces the unemployment risk of workers … replacement rate can be more effective compared to an increase of the unemployment benefit replacement rate. …

This paper develops a theory characterizing the effects of fiscal policy on unemployment over the business cycle. The … theory is based on a model of equilibrium unemployment in which jobs are rationed in recessions. Fiscal policy in the form of … government spending on public-sector jobs reduces unemployment, especially during recessions: the fiscal multiplier …

This paper illustrates why fiscal policy becomes more effective as unemployment rises in recessions. The theory is … based on the equilibrium unemployment model of Michaillat (forthcoming), in which jobs are rationed in recessions. Fiscal …; therefore fiscal policy reduces unemployment effectively. Formally the fiscal multiplier—the reduction in unemployment rate …

recessions. First, we show that the consumption risk of short-time work is considerably smaller compared to unemployment using … frictions featuring an endogenous firing and short-time work decision. In recessions, short-time work reduces the unemployment …

I develop a New Keynesian model in which a type of government multiplier doubles when unemployment rises from 5 percent … unemployment is high, the increase in tightness and resulting crowding-out are small. …

In this paper we investigate the impact of the recent US unemployment benefits extension on the labor market dynamic … experiments suggest that, in contrast to the existing literature that ignores the liquidity trap situation, unemployment benefits … expansions cause a wage and inflationary pressure which curb the increase in real interest rate and slightly reduce unemployment …

recessions. First, we show that the consumption risk of short-time work is considerably smaller compared to unemployment using … frictions featuring an endogenous firing and short-time work decision. In recessions, short-time work reduces the unemployment …

endogenous firing as well as a short-time work decision. In recessions, short-time work reduces the unemployment risk of workers … replacement rate can be more effective compared to an increase of the unemployment benefit replacement rate. …

In this paper we investigate the impact of the recent US unemployment benefits extension on the labor market dynamic … experiments suggest that, in contrast to the existing literature that ignores the liquidity trap situation, unemployment benefits … expansions cause a wage and inflationary pressure which curb the increase in real interest rate and slightly reduce unemployment …

In this paper we investigate the impact of the recent US unemployment benefits extension on the labor market dynamic … experiments suggest that, in contrast to the existing literature that ignores the liquidity trap situation, unemployment benefits … expansions cause a wage and inflationary pressure which curb the increase in real interest rate and slightly reduce unemployment …