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Credit Constraints and the Persistence of Unemployment

Dromel, Nicolas - 2009

In this paper, we argue that credit market imperfections impact not only the level of unemployment, but also its persistence. For this purpose, we first develop a theoretical model based on the equilibrium matching framework of Mortensen and Pissarides (1999) and Pissarides (2000) where we...

Persistent link: https://www.econbiz.de/10013155160

Interest Rate Hysteresis in Macroeconomic Investment Under Uncertainty

Belke, Ansgar Hubertus - 2019

the scenarios of both certainty and uncertainty. We capture the direct interest rate-hysteresis on the investments and the … capital stock and, explicitly, of stochastic changes on the interest rate-investment hysteresis. Starting with hysteresis … hysteresis effects on a macroeconomic level. Based on our simple model we are able to obtain some conclusions about the efficacy …

Persistent link: https://www.econbiz.de/10012863765

Interest Rate Bands of Inaction and Play-Hysteresis in Domestic Investment : Evidence for the Euro Area

Belke, Ansgar Hubertus - 2019

'play' area. Second, we apply an algorithm describing path-dependent play-hysteresis to estimate investment hysteresis using …

Persistent link: https://www.econbiz.de/10012863789

Amerisclerosis? The Puzzle of Rising U.S. Unemployment Persistence

Coibion, Olivier - 2014

The persistence of U.S. unemployment has risen with each of the last three recessions, raising the specter that future U.S. recessions might look more like the Eurosclerosis experience of the 1980s than traditional V-shaped recoveries of the past. In this paper, we revisit possible explanations...

Persistent link: https://www.econbiz.de/10013061955

Unemployment Dynamics and the Cost of Business Cycles

Hairault, Jean-Olivier; Langot, François; Osotimehin, … - 2021

In this paper, we investigate whether business cycles can imply sizable effects on average unemployment. First, using a reduced-form model of the labor market, we show that job finding rate fluctuations generate intrinsically a non-linear effect on unemployment: positive shocks reduce...

Persistent link: https://www.econbiz.de/10013324775

Expected Inflation, Sunspots Equilibria and Persistent Unemployment Fluctuations

Dufourt, Frédéric - 2009

We propose and estimate a model where unemployment fluctuations result from self-fulfilling changes in expected inflation (sunspot shocks) affecting nominal wage bargaining. Since the estimated parameters fall near the locus of Hopf bifurcations, country-specific expected inflation shocks can...

Persistent link: https://www.econbiz.de/10013157753

The Dynamics of Entrepreneurship : Hysteresis, Business Cycles and Government Policy

Congregado, Emilio - 2009

US. We ask whether entrepreneurship exhibits hysteresis, defined as a macro dynamic structure in which cyclical … fluctuations have persistent effects on the natural rate of entrepreneurship. We find evidence of hysteresis in Spain, but not the …

Persistent link: https://www.econbiz.de/10012764085

Inflation Persistence and the Phillips Curve Revisited

Karanassou, Marika - 2007

A major criticism against staggered nominal contracts is that they give rise to the so called persistency puzzle - although they generate price inertia, they cannot account for the stylised fact of inflation persistence. It is thus commonly asserted that, in the context of the new Phillips curve...

Persistent link: https://www.econbiz.de/10012777470

Reconciling the Divergence in Aggregate U.S. Wage Series

Champagne, Julien - 2016

According to data from the Labor Productivity and Costs (LPC) program, average hourly real compensation in the United States has grown consistently over time and become markedly more volatile since the mid-1980s. By contrast, data from the Current Employment Statistics (CES) imply that average...

Persistent link: https://www.econbiz.de/10012997447

Intra-Industry Trade, Involuntary Unemployment and Macroeconomic Stability

Le Riche, Antoine; Lloyd-Braga, Teresa; Modesto, Leonor - 2021

We study the impact of intra-industry trade and capital mobility on steady state welfare and on the stability properties of two countries with identical technologies and preferences. We consider a two-factor overlapping generations model, featuring one-sector of differentiated goods with taste...

Persistent link: https://www.econbiz.de/10013250260