Business cycles, unemployment insurance, and the calibration of matching models
James Costain,Michael Reiter +1 more
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TLDR
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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Journal ArticleDOI
A note on trend growth, unemployment, and optimal monetary policy
TL;DR: In this paper, the implications of trend growth for optimal monetary policy in the presence of search and matching unemployment were analyzed and it was shown that lower trend growth reduces not only the level but also the optimal volatility of the nominal interest rate.
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Beveridgean Unemployment Gap
Pascal Michaillat,Emmanuel Saez +1 more
TL;DR: In this paper, the authors developed a sufficient-statistic formula for the unemployment gap, the difference between the actual unemployment rate and the efficient unemployment rate, and applied this formula to the United States, 1951-2019.
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Borrowing Constraints, Search, and Life-Cycle Inequality
TL;DR: In this paper, the authors quantified the impact of borrowing constraints on consumption and earnings inequality in a life-cycle model with labor market search and endogenous human capital accumulation and showed that wealth inequality causes both placement into lower-paying jobs as well as slower human capital creation when workers face borrowing constraints.
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Structural unemployment and the regulation of product market
TL;DR: In this article, the authors assess the impact of product market regulation on unemployment in a large-firm model of the labor market with search frictions and firm entry and exit.
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How Much are SVARs with Long-Run Restrictions Missing without Cyclically Moving Factor Shares?
TL;DR: In this article, the authors explore the quantitative robustness of these empirical results to the explicit introduction of cyclically moving factor shares and parsimoniously incorporate into Gali's and Fisher's empirical frameworks the systematic fluctuations of factor shares under the identifying assumption, following Rios-Rull and Santaeulalia-Llopis (2010), that innovations to factor shares are purely redistributive.
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.
Posted Content
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.
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