Business cycles, unemployment insurance, and the calibration of matching models
James Costain,Michael Reiter +1 more
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The authors theoretically and empirically document a puzzle that arises when an RBC economy with a job matching function is used to model unemployment, and show that either sticky wages or match-specific productivity shocks can improve the model's performance by making the firm's flow of surplus more procyclical.About:
This article is published in Journal of Economic Dynamics and Control.The article was published on 2008-04-01 and is currently open access. It has received 412 citations till now. The article focuses on the topics: Unemployment & Efficiency wage.read more
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Reservation wages and the wage flexibility puzzle
TL;DR: The authors show that reservation wages significantly respond to backward looking reference points, as proxied by rents earned in previous jobs, and show that backward-looking reference dependence markedly reduces the predicted cyclicality of both wages and reservation wages.
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The Unemployment Volatility Puzzle: The Role of Matching Costs Revisited
José I. Silva,Manuel Toledo +1 more
TL;DR: In this paper, the role of matching costs was investigated and it was shown that when these costs are not sunk and can be partially passed on to new hired workers in the form of lower wages, the amplication mechanism of fixed matching costs is considerably reduced and wages in new hired positions become more sensitive to productivity shocks.
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Unemployment Dynamics with Staggered Nash Wage Bargaining
Antonella Trigari,Mark Gertler +1 more
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Comparative Advantage in Cyclical Unemployment
TL;DR: In this article, the authors introduce worker differences in labor supply, reecting differences in skills and assets, into a model of separations, matching, and unemployment over the business cycle.
References
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Report SeriesDOI
Initial conditions and moment restrictions in dynamic panel data models
Richard Blundell,Stephen Bond +1 more
TL;DR: In this paper, two alternative linear estimators that are designed to improve the properties of the standard first-differenced GMM estimator are presented. But both estimators require restrictions on the initial conditions process.
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A sensitivity analysis of cross-country growth regressions
Robert A. Levine,David Renelt +1 more
TL;DR: In this article, the authors study whether the conclusions from existing studies are robust or fragile when small changes in the list of independent variables occur, and they find that although "policy"appears to be importantly related to growth, there is no strong independent relationship between growth and almost every existing policy indicator.
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A sensitivity analysis of cross-country growth regressions
Robert A. Levine,David Renelt +1 more
TL;DR: The authors examined whether the conclusions from existing studies are robust or fragile to small changes in the conditioning information set and found a positive, robust correlation between growth and the share of investment in GDP and between investment share and the ratio of international trade to GDP.
Book ChapterDOI
Efficiency Wage Models of the Labor Market: Equilibrium Unemployment as a Worker Discipline Device
Carl Shapiro,Joseph E. Stiglitz +1 more
TL;DR: In this article, the authors show that the information structure of employer-employee relationships, in particular the inability of employers to costlessly observe workers' on-the-job effort, can explain involuntary unemployment as an equilibrium phenomenon.
Journal ArticleDOI
Job Creation and Job Destruction in the Theory of Unemployment
TL;DR: In this paper, a job-specific shock process in the matching model of unemployment with non-cooperative wage behavior is modeled and the authors obtain endogenous job creation and job destruction processes and study their properties.
Related Papers (5)
The cyclical behavior of equilibrium unemployment and vacancies revisited
Marcus Hagedorn,Iourii Manovskii +1 more