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Trend growth, unemployment and optimal monetary policy

Lechthaler, Wolfgang; Tesfaselassie, Mewael - 2015

and matching unemployment. We show that trend growth in itself does not generate a trade-off for the monetary authority …

Persistent link: https://www.econbiz.de/10011301390

Endogenous growth, skill obsolescence and output hysteresis in a New Keynesian model with unemployment

Lechthaler, Wolfgang; Tesfaselassie, Mewael F. - 2020

labor market and skill obsolescence from long-term unemployment. The model can account for key features of the Great … aggregate demand raises unemployment and the training costs associated with skill obsolescence. Lower employment hinders …

Persistent link: https://www.econbiz.de/10012270555

Labor force participation, job search effort and unemployment insurance in the laboratory

Lechthaler, Wolfgang; Ring, Patrick - 2020

How the provision of unemployment benefits affects employment and unemployment is a debated issue. In this paper, we … job market with search effort and labor force participation decisions while varying the maximum length of unemployment … effort when unemployment benefits are extended. However, individuals are more likely to participate in the labor force and to …

Persistent link: https://www.econbiz.de/10012180927

Quadratic labor adjustment costs and the New-Keynesian model

Lechthaler, Wolfgang; Snower, Dennis J. - 2008

We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this is sufficient to increase both, output and inflation persistence.

Persistent link: https://www.econbiz.de/10010263522

Labor selection, turnover costs and optimal monetary policy

Faia, Ester; Lechthaler, Wolfgang; Merkl, Christian - 2012

We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are set according to a right to manage bargaining where the firms' counterpart is given by currently employed workers. Our model captures well the salient features of European labor...

Persistent link: https://www.econbiz.de/10011416457

Optimal fiscal policy with labor selection

Chugh, Sanjay K.; Lechthaler, Wolfgang; Merkl, Christian - 2016

This paper characterizes long-run and short-run optimal fiscal policy in the labor selection framework. In a calibrated non-Ramsey decentralized equilibrium, labor market volatility is inefficient. Keeping fixed the structural parameters, the Ramsey government achieves efficient labor market...

Persistent link: https://www.econbiz.de/10011434953

Trade liberalization and wage inequality: New insights from a dynamic trade model with heterogeneous firms and comparative advantage

Lechthaler, Wolfgang; Mileva, Mariya - 2014

We develop a dynamic general equilibrium trade model with comparative advantage, heterogeneous firms, heterogeneous workers and endogenous firm entry to study wage inequality during the adjustment after trade liberalization. We find that trade liberalization increases wage inequality both in the...

Persistent link: https://www.econbiz.de/10011453718

Quadratic labor adjustment costs, business cycle dynamics and optimal monetary policy

Lechthaler, Wolfgang; Snower, Dennis J. - 2011

We build quadratic labor adjustment costs into an otherwise standard New-Keynesian model of the business cycle and show that this increases output persistence in a similar vein as other models of labor market frictions. Furthermore, it is demonstrated that quadratic labor adjustment costs imply...

Persistent link: https://www.econbiz.de/10011453723

Does short-time work save jobs? A business cycle analysis

Balleer, Almut; Gehrke, Britta; Lechthaler, Wolfgang; … - 2013

unemployment and output fluctuations. The central question is whether the rule based component (i.e., the existence of the … our baseline scenario the rule based component stabilizes unemployment fluctuations by 15% and output fluctuations by 7 … significant effect on unemployment. These effects are based on a structural VAR estimation which is identified using the output …

Persistent link: https://www.econbiz.de/10010294349

Trade liberalization and wage inequality: New insights from a dynamic trade model with heterogeneous firms and comparative advantage

Lechthaler, Wolfgang; Mileva, Mariya - 2013

Persistent link: https://www.econbiz.de/10010327852