Journal ArticleDOI
Productivity and the labor market: comovement over the business cycle*
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In this paper, the authors show that the discrepancy between the data and the model becomes substantially smaller if employment data from the Current Population Survey (CPS) is used in measuring productivity instead of the commonly used CPS data from Current Employment Statistics (CES).Abstract:
The productivity-driven Mortensen-Pissarides model predicts that labor productivity, dened as the ratio of output to employment, is strongly correlated with employment, unemployment, vacancies and wages whereas these correlations were argued to be much weaker in the data, especially since the mid 1980s. We rst document that the size of these discrepancies between the data and the model becomes substantially smaller if employment data from the Current Population Survey is used in measuring productivity instead of the commonly used employment data from the Current Employment Statistics. Second, we show that incorporating time to build and a stochastic value of home production helps reconcile the quantitative performance of the model with the data with stochastic productivity being the key determinant of the business cycle dynamics of the model.read more
Citations
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Risk, Unemployment, and the Stock Market: A Rare-Event-Based Explanation of Labor Market Volatility
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References
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Journal ArticleDOI
Time to build and aggregate fluctuations
TL;DR: In this article, a general equilibrium model is developed and fitted to U.S. quarterly data for the post-war period, with the assumption that more than one time period is required for the construction of new productive capital and the non-time-separable utility function that admits greater intertemporal substitution of leisure.
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.
Book
Equilibrium Unemployment Theory
TL;DR: In this article, the model of balanced growth is used to model the labour market and balance-growth adjustment dynamics, and search intensity and job advertising are modeled as ananlysis of the labor market.
Journal ArticleDOI
The Cyclical Behavior of Equilibrium Unemployment and Vacancies
TL;DR: In this article, the authors argue that the textbook search and matching model cannot generate the observed business-cycle-frequency fluctuations in unemployment and job vacancies in response to shocks of a plausible magnitude.
Journal ArticleDOI
Real Business Cycles
John B. Long,Charles I. Plosser +1 more
TL;DR: In this article, the authors demonstrate how certain very ordinary economic principles lead maximizing individuals to choose consumption-production plans that display many of the characteristics commonly associated with business cycles, including rational expectations, complete current information, stable preferences, no technological change, no long-lived commodities, no frictions or adjustment costs, no government, no money, and no serial dependence in the stochastic elements of the environment.
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