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
Citations
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Unemployment, Vacancies, and Social Networks
TL;DR: The authors incorporate social networks into a search and matching model and show that the presence of network externalities (i) increases the volatility of unemployment and ii) can lead to multiple equilibria.
Unemployment, Hours, Taxation and the Welfare State{ A Quantitative Assessment of Institutional Changes ⁄
TL;DR: In this article, a structural matching model with heterogeneous risk-averse agents is used to investigate whether key mechanisms identified in the literature can quantitatively explain the differences in the US and Germany.
A Model of Unemployment with Matching Frictions and Job Rationing
TL;DR: Michaillat et al. as discussed by the authors proposed a model of the labor market that integrates two important sources of unemployment: matching friction and job rationing, and the main theoretical result is that during recessions rationing unemployment increases, driving the rise in total unemployment, whereas frictional unemployment decreases.
Dissertation
Empirical topics in search and matching models of the labour market
TL;DR: In this article, the Mortensen and Pissarides model is used to model the contribution of hazards for two distinct and contiguous geographical areas in the United Kingdom. But the results are sensitive to whether or not the data are smoothed, and whether a steady state is imposed.
Journal ArticleDOI
Labor market volatility in a fully specified RBC search model: An analytical investigation
TL;DR: This paper showed that including a nonlinear production function with physical capital in the Diamond-Mortensen-Pissarides model lowers the elasticity of labor market tightness with respect to labor productivity by about 11.5% under the Hagedorn-Manovskii calibration.
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.
Posted Content
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.
Related Papers (5)
The cyclical behavior of equilibrium unemployment and vacancies revisited
Marcus Hagedorn,Iourii Manovskii +1 more