Unemployment occurs because workers and firms have control over wages and prices. The exercise of market power over … interventions on unemployment and growth. Reforms that result in lower labor costs raise employment, reduce unemployment, and boost … unemployment is larger than one would expect if the pro-competitive effect of the reforms were ignored. These reforms, thus, are …

level of frictional unemployment as a statistical feature of a decentralized labor market. Shocks to the economy can produce … short-run equilibrium involuntary unemployment arising from unfulfilled expectations. Even after agents align their … negative shock to demand can result in higher levels of equilibrium unemployment. In this way the model exhibits a particular …

Using an efficiency-wage model, we examine the relationship between indeterminacy and unemployment insurance. It is … shown that the less unemployment insurance is, the more likely equilibrium is to be indeterminate. Equilibrium can be …

In this paper, I show that the decline in household consumption during unemployment spells depends on both liquid and … illiquid asset positions. I also provide evidence that unemployment spells predict the withdrawal of illiquid assets …, particularly when households have few liquid assets. Motivated by these findings, I embed endogenous unemployment risk in a two …

sound assessment of the economic outlook. The Treasury Macroeconometric Model of Australia ("EMMA") is a framework to …