We show how on-the-job search and the propagation of shocks to the economy are intricately linked. Rising search by employed workers in a boom amplifies the incentives of firms to post vacancies. In turn, more vacancies induce more on-the-job search. By keeping job creation costs low for firms,...

We analyse the implications of intra-firm bargaining for business cycle dynamics in models with large firms and search frictions. Intra-firm bargaining implies a feedback effect from the marginal revenue product to wage setting which leads firms to over-hire in order to reduce workers'...

Hat man im den letzten Jahren insbesondere versucht, die Gewinne der Unternehmen über Kosteneinsparungen zu steigern, so steht heute bei vielen Managern das Wachstum wieder ganz oben auf der Agenda. Damit dieses Wachstum langfristig zu Gewinnen führt, muss es nachhaltig gestaltet werden....