a highly indebted open economy. In contrast to the standard open economy framework, search unemployment and wage … intertemporal welfare gain, even though unemployment increases strongly in the short run. A 50% haircut of foreign debt … significantly reduces the initial response of the unemployment rate. In case of a temporary productivity shock, sticky wages imply …

We show that in a Ricardo-Viner-type trade model with unemployment due to search and matching the productivity effect …

We investigate empirically the effect of government purchases on unemployment in 20 OECD countries, for the period 1960 …-2007. Compared to earlier studies we use a data set with more variation in unemployment, and which allows for controlling for a host … unemployment; an increase equal to one percent of GDP reduces unemployment by 0.2 percentage point in the same year. The effect is …

various performance indicators (unemployment, long-term unemployment, employment, activity rate). Our results confirm that … high taxes increase unemployment, while active labour market policies tend to reduce it. We also show that stricter …

cannot easily switch industries and wages are inflexible in the short run, globalization tends to increase unemployment. In … this situation, government unemployment benefits reduce the wages that exporting firm's need to pay workers as risk … state can simultaneously cause an increase in unemployment and exports …