This paper tries to bridge the gap between the theoretical and empirical analyses of the aggregate impacts of labor market policies (LMPs). Contrary to previous empirical studies, we conduct an econometric analysis based on sound theoretical foundations. The specification is based on an...

This paper is concerned with the general equilibrium effects of active labor market programs and the unemployment insurance system (the replacement ratio and the level of sanctions). It develops an equilibrium job matching model where active programs and the rate of sanctions have an amiguous...

This paper attempts to model the relationship between monetary policy and financial asset prices. We develop an aggregative model under forward-looking rational expectations to analyse the optimal monetary policy response to stock prices and exchange rates shocks. We first demonstrate that a...

This paper measures the impact of labor market policies (LMPs) on regular employment. Contrary to previous empirical studies, we conduct an econometric analysis based on sound theoretical foundations. The specification is based on an equilibrium job search model where LMPs affect tightness on...