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. …

This paper presents a theory explaining the labor market matching process through microeconomic incentives. There are …

unemployment, very low volatility of labour market tightness, and for a positively sloped Beveridge curve. These implications are …

staggered nominal wage bargaining. We find that the estimated natural rate of unemployment is consistent with the NBER … description of the U.S. business cycle, and that the inflation/unemployment trade-off facing monetary policymakers is … unemployment gaps are more efficient than rules responding to output or unemployment growth rates, also in the presence of …

This paper develops a theory characterizing the effects of fiscal policy on unemployment over the business cycle. The … theory is based on a model of equilibrium unemployment in which jobs are rationed in recessions. Fiscal policy in the form of … government spending on public-sector jobs reduces unemployment, especially during recessions: the fiscal multiplier …

frictions and unemployment insurance, when the latter is only imperfectly related to search effort. A balanced social insurance … volatility and persistence of vacancies and unemployment. …

of unemployment and vacancies to negative shocks to the aggregate productivity of labor. …

, and price and wage rigidities. Regulation affects producer entry costs, employment protection, and unemployment benefits …

Recent research in macroeconomics emphasizes the role of wage rigidity in accounting for the volatility of unemployment …