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Real price and wage rigidities in a model with matching frictions

Kuester, Keith - 2007

which induce smooth inflation also dampen the adjustment of wages in response to shocks. In the search and matching … Phillips curve is that inflation is not only driven by an output gap but also by an employment gap – a feature usually …

Persistent link: https://www.econbiz.de/10011604766

The (Ir)Relevance of Real Wage Rigidity in the New Keynesian Model with Search Frictions

Krause, Michael U.; Lubik, Thomas A. - 2004

inflation and labor market dynamics. In particular, it fails to generate a Beveridge curve: vacancies and unemployment are … market flows to more realistic values. However, inflation dynamics are only weakly affected by real wage rigidity. This is … marginal cost that is relevant for inflation dynamics via the Phillips curve contains a dynamic component that does not …

Persistent link: https://www.econbiz.de/10014071151

Shocks and frictions under right-to-manage wage bargaining : a transatlantic perspective

Consolo, Agostino; Hertweck, Matthias S. - 2010

result is that the model is able to generate persistent responses in output, inflation, and total labor input to both neutral …

Persistent link: https://www.econbiz.de/10008662486

The high sensitivity of employment to agency costs : the relevance of wage rigidity

Hristov, Atanas - 2010

cycles. Economic Theory, 12(3):583-597]. The aim of this article is to show that financing constraints can substantially …

Persistent link: https://www.econbiz.de/10008663379

From micro to macro hysteresis : long-run effects of monetary policy

Alves, Felipe; Violante, Giovanni L. - 2024 - Last updated: October 24, 2024

We develop a Heterogeneous Agent New Keynesian model with a three-state frictional labour market that is consistent with the empirical evidence that (i) low-skilled workers are more exposed to the business cycle, (ii) displacement leads to long-lasting earnings losses, and (iii) unemployment is...

Persistent link: https://www.econbiz.de/10015098505

Shocks and Frictions under Right-to-Manage WageBargaining: A Transatlantic Perspective

Consolo, Agostino; Hertweck, Matthias S. - Wirtschaftswissenschaftliches Zentrum <Basel>

result is that the model is able to generatepersistent responses in output, inflation, and total labor input to both …

Persistent link: https://www.econbiz.de/10008845687

Inflation dynamics with labour market matching: assessing alternative specifications

Christoffel, Kai; Costain, James S.; De Walque, Gregory; … - European Central Bank - 2009

This paper reviews recent approaches to modeling the labour market and assessestheir implications for ination dynamics through both their e¤ect on marginalcost and on price-setting behaviour. In a search and matching environment, weconsider the following modeling setups: right-to-manage...

Persistent link: https://www.econbiz.de/10005866597

Labor Market Search, Wage Bargaining and Inflation Dynamics

Trigari, Antonella - 2004

This paper integrates a theory of equilibrium unemployment into a monetary model with nominal price rigidities. The … for inflation dynamics: under right-to-manage, the real wage rigidity also results in smaller fluctuations of inflation …. These findings are consistent with recent evidence suggesting that real wages and inflation only vary by a moderate amount …

Persistent link: https://www.econbiz.de/10014069816

Resuscitating the Wage Channel in Models with Unemployment Fluctuations

Christoffel, Kai Philipp - 2008

All else equal, higher wages translate into higher inflation. More rigid wages imply a weaker response of inflation to …

Persistent link: https://www.econbiz.de/10012770794

Business cycle asymmetries and the labor market

Kohlbrecher, Britta; Merkl, Christian - 2016 - First version: April 2015. This version: February 2016

This paper shows that the matching function and the Beveridge curve in the United States exhibit strong nonlinearities over the business cycle. These patterns can be replicated by enhancing a search and matching model with idiosyncratic productivity shocks for new contacts. Large negative...

Persistent link: https://www.econbiz.de/10011444082