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stock prices even though TFP does not change significantly for more than 2 years. A labor search model in which wages are …-finding rates. The proposed wage rule is consistent with empirical responses of wages to both anticipated and unanticipated …
Persistent link: https://www.econbiz.de/10014536993
Traditional models of the labor market typically assume that wages are set by the market, not the firm. However, over … suggest that a monopsonistic model, where individual firms and not the market set wages, may be more appropriate. This model … attributes more wage-setting power to firms, particularly during economic downturns, which helps explain why wages decrease …
Persistent link: https://www.econbiz.de/10011662673
Financial openness is introduced into a real-business-cycle setup augmented with a detailed government sector. The model is calibrated to Bulgarian data for the period following the introduction of the currency board arrangement (1999-2020). The quantitative importance of financial openness is...
Persistent link: https://www.econbiz.de/10013345805
This paper develops a two-agent New Keynesian model, which is suitable for identifying the drivers of business cycle fluctuations in small open, resource-rich, resource-dependent emerging economies. We confront the model with Nigerian data on eleven macro-economic variables using the Bayesian...
Persistent link: https://www.econbiz.de/10013362915
This paper analyzes Germany’s unusual labor market experience during the Great Recession. We estimate a general equilibrium model with a detailed labor market block for post-unification Germany. This allows us to disentangle the role of institutions (short-time work, government spending rules)...
Persistent link: https://www.econbiz.de/10013436693
We introduce progressive consumption taxation into a real-business-cycle setup augmented with a detailed government sector. We calibrate the model to Bulgarian data for the period following the introduction of the currency board arrangement (1999–2016). We investigate the quantitative...
Persistent link: https://www.econbiz.de/10014306900
This article takes an otherwise standard real-business-cycle setup with a government sector, and augments it with shocks to consumer confidence to study business-cycle fluctuations. A surprise increase in consumer confidence generates higher utility, as the household values consumption more in...
Persistent link: https://www.econbiz.de/10014306901
Denmark is often highlighted as a "flexicurity" country with lax employment protection legislation, generous unemployment insurance, and active labor market policies. This model has coped with the Great Recession and the Covid-19 pandemic, avoiding large increases in long-term and structural...
Persistent link: https://www.econbiz.de/10014331197
We modify an otherwise standard business cycle model with a richer government sector, and add an augmented cash-in-advance (CIA) considerations. In particular, the cash in advance constraint of Cole (2020) is extended to include private investment and government consumption, and allows a...
Persistent link: https://www.econbiz.de/10014479088
cyclicality of their employment and wages relative to women's. We study the extent to which fiscal policy may offset or worsen …
Persistent link: https://www.econbiz.de/10014496052