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persistence. This view is questioned in the paper using German data on unemployment. A new class of time-series models, the … able to generate fragile equilibria. For instance, in this literature the natural unemployment rate is allowed to shift … over time depending on past unemployment. Actually, many European unemployment series seem to exhibit a unit root or …
Persistent link: https://www.econbiz.de/10005666959
marginal cost with respect to output. The smoother dynamics of real marginal cost increase both amplification and persistence …
Persistent link: https://www.econbiz.de/10005067494
aggregate unemployment persistence based on externalities at a market level rather than individual-level persistence. …This Paper challenges the consensus on the nature of unemployment dynamics in Britain. We show that the argument that … changes in unemployment arise mostly from changes in the duration of unemployment (rather than in the event of becoming …
Persistent link: https://www.econbiz.de/10005791250
Spain and Portugal are two neighbour economies which share many characteristics. Spanish unemployment is more than … double Portuguese unemployment, however. In this chapter we resort to Structural Vector Autoregression (SVAR) techniques to …, their effects on unemployment were much more long-lasting in Spain than in Portugal. …
Persistent link: https://www.econbiz.de/10005661486
We present a static model of aggregate demand and unemployment. The economy has a nonproduced good, a produced good … prices as parameters. We obtain the following results: (1) unemployment and unsold production prevail in equilibrium; (2 … and reduce unemployment. …
Persistent link: https://www.econbiz.de/10011083246
unemployment rate. I show that the connection between changes in the stock market and changes in the unemployment rate has remained … unemployment. …
Persistent link: https://www.econbiz.de/10011083701
doubles when unemployment rises from 5% to 8%. Theoretically, such countercyclicality arises because of a nonlinearity, namely … in recessions but large in expansions. Hence, government consumption reduces unemployment much more in recessions than in …
Persistent link: https://www.econbiz.de/10011083889
To generate big responses of unemployment to productivity changes, researchers have reconfigured matching models in … introducing costly acquisition of credit, or by positing government mandated unemployment compensation and layoff costs. All of … these redesigned matching models increase responses of unemployment to movements in productivity by diminishing the …
Persistent link: https://www.econbiz.de/10011201357
This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are heterogeneous variations in the characteristics of workers and jobs, and firms face adjustment costs in responding to these variations. Matches and separations are described...
Persistent link: https://www.econbiz.de/10005000439
A search-theoretic general equilibrium model of frictional unemployment is shown to be consistent with some of the key … regularities of unemployment over the business cycle. In the model the return to a job moves stochastically. Agents can choose … unemployment. …
Persistent link: https://www.econbiz.de/10005666661