construct a monetary model in which: i) the unemployed are worse off than the employed, i.e. unemployment is involuntary and ii … of the labor force and unemployment rate to these three shocks. …

We propose a monetary model in which the unemployed satisfy the official US definition of unemployment: they are people ….e., unemployment is ‘involuntary’). We integrate our model of involuntary unemployment into the simple New Keynesian framework with no … capital and use the resulting model to discuss the concept of the ‘non-accelerating inflation rate of unemployment’. We then …

Using an efficiency-wage model, we examine the relationship between indeterminacy and unemployment insurance. It is … shown that the less unemployment insurance is, the more likely equilibrium is to be indeterminate. Equilibrium can be … indeterminacy. Our result is based on the fact that the no-shirking condition with marginal utility ofw ealth kept constant is …

In this paper fiscal policy is examined for an open economy characterised by unemployment due to efficiency wages. We …

In order to alleviate unemployment it is often recommended to reduce social security contributions (SSC) and to … compensate for the ensuing loss in revenues by a rise in the value-added tax (VAT). Assuming unemployment to be caused by … neutralised, for example, by imposing a constant wedge, the employment impact will depend on the nature of the unemployment …

This paper uses efficiency wage theory and the existence of community-based sharing to hypothesize that labor markets … in developing countries have multiple equilibria - the same economy can be stuck at different levels of unemployment with …-sharing among the poor is prevalent. It seems reasonable to posit that in such an economy more unemployment leads to more income …