Showing 1 - 10 of 586
. Furthermore, they fail to allow for quantity rationing and to model unemployment as a catastrophic event. The macroeconomics based …
Persistent link: https://www.econbiz.de/10005504355
Two key issues are examined in an integrated framework: the emergence of global imbalances and the precautionary motive for accumulating reserves. Standard models of general equilibrium would predict modest current account surpluses in the emerging markets if they face higher risk than the US...
Persistent link: https://www.econbiz.de/10005136702
How and why do financial conditions matter for real outcomes? The ‘workhorse model of money and liquidity’ of Kiyotaki and Moore (2008) shows how--with full employment maintained by flexible prices--shifting credit constraints can affect investment and future aggregate supply. We show that,...
Persistent link: https://www.econbiz.de/10009275964
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. …
Persistent link: https://www.econbiz.de/10008642883
This paper develops a rational expectations model with multiple equilibrium unemployment rates where the price of … a permanent reduction in wealth and consumption and a permanent increase in the unemployment rate. My work suggests that …
Persistent link: https://www.econbiz.de/10009147406
Implicit contract theory has been successful in explaining wage rigidity but not unemployment. We argue that the theory … restrictions contracts do not result in unemployment but that the market equilibrium is not constrained Pareto efficient. Our main … do not lead to unemployment, but limited observability may lead to unemployment. If, however, two or more restrictions …
Persistent link: https://www.econbiz.de/10005504702
workers, that this presumption is in general misplaced: the impact of severance payments on unemployment is qualitatively … unemployment, depending on the union’s coverage of outsiders’ contracts. This prediction finds empirical support in a panel dataset …
Persistent link: https://www.econbiz.de/10005656295
The paper analyses the determinants of interwar unemployment using a previously unexploited quarterly data set for 1924 …-39. Individual equations for insured employment, insured unemployment and the nominal wage rate are estimated and tested. The results … interpretations which emphasize structural unemployment, wage rigidity or benefit-induced unemployment: this helps explain why such …
Persistent link: https://www.econbiz.de/10005656339
The paper surveys recent analyses of rising unemployment in Europe based on the concept of the natural rate. It argues … efficiency wages, hysteresis, and insiders/outsiders are related to a core theory in which the unemployment benefit is the basic …, and that in its absence they would fail to explain unemployment. …
Persistent link: https://www.econbiz.de/10005792267
We develop a simple model to study how relative wage rigidity affects equilibrium taxation. It is argued that relative wage rigidity, by compressing incomes within the middle class, leads to a lower degree of redistributive conflict within the politically important core of society, even though...
Persistent link: https://www.econbiz.de/10005123707