We study optimal government spending in a business cycle model with labor income taxes and unemployment due to hiring …

Some economic observers argue “structural unemployment” has increased in the wake of the Great Recession, but in this … paper we find little support for either of two arguments that suggest that structural unemployment has been on the rise. The … first argument focuses on the large increase in unemployment among construction workers. The second argument is that falling …

doubles when unemployment rises from 5% to 8%. Theoretically, such countercyclicality arises because of a nonlinearity, namely … in recessions but large in expansions. Hence, government consumption reduces unemployment much more in recessions than in …

We study optimal government spending in a business cycle model with frictional unemployment. The Ramsey optimal policy …

This paper models unemployment as the result of matching frictions and job rationing. Job rationing is a shortage of … returns to labor. During recessions, job rationing is acute, driving the rise in unemployment, whereas matching frictions … contribute little to unemployment. Intuitively, in recessions jobs are lacking, the labor market is slack, recruiting is easy and …

This article is based on a paper that models unemployment as the result of matching frictions and job rationing. Job … diminishing marginal returns to labor. During recessions, job rationing is acute, driving the rise in unemployment, whereas … matching frictions contribute little to unemployment. Intuitively, in recessions jobs are lacking, the labor market is slack …

This paper studies the conditional patterns of unemployment dynamics in Germany. We employ a structural VAR model and …

unemployment and a rich fiscal sector employing distortionary taxation and government debt. Results show that only stimuli directed …