We propose a theory of low-frequency movements in unemployment based on asymmetric real wage rigidities. The theory … generates two main predictions: long-run unemployment increases with (i) a fall in long-run productivity growth and (ii) a rise …-run unemployment over the 1980s and its rise during the late 2000s. …

This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of … capital may be unbounded above. I argue that this property is an important feature of any rational-agent explanation of a … financial crisis as a large negative self-fulfilling shock to the expectation of the future price of capital. This shock causes …

growth model with capital mobility that emphasizes a link between wages, savings and growth. We identify the conditions on … the emergence of national unemployment due to minimum wages. Interestingly, differences in national savings propensities …

This paper studies the joint behaviour of inflation and unemployment in Spain over the period 1964–95 in order to … on the effects of demand shocks on the unemployment rate. Our estimates suggest, according to the reader’s prior belief …

. Furthermore, they fail to allow for quantity rationing and to model unemployment as a catastrophic event. The macroeconomics based …

This paper considers an equilibrium model of unemployment in a labour market where all vacancies are advertised in a … newspaper. Unemployment occurs in occupations that are short on vacancies. New vacancies are created by entrepreneurial search … unique rational expectations equilibrium is shown to exist. The unemployment-vacancy dynamics are consistent with so …

Theoretical predictions of the impact of TFP growth on unemployment are ambiguous, and depend on the extent to which … creative destruction effects by estimating the impact of TFP growth on unemployment in a panel of industrial countries. We find …-state dynamics of unemployment. Capitalization effects explain some of the estimated impact but a part remains unexplained. …

. The Beveridge curve depicts the steady state of the model, whereby inflows into unemployment are equal to the outflows …

leads to constantly rising unemployment and tax rates. The resulting crisis may trigger new insights into economic …