Krusell, Per; Mukoyama, Toshihiko; Rogerson, Richard Donald - In: Quantitative economics : QE ; journal of the … 1 (2010) 1, pp. 97-127
employment and unemployment. We use a model that features both frictions and an operative labor supply margin to examine the … robustness of this feature to the inclusion of an empirically reasonable labor supply channel. The response of unemployment to … changes in frictions is similar in both models, but the labor supply response present in our model greatly attenuates the …