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...

In this paper, I introduce money in the standard labor-matching model(Mortensen and Pissarides 1999, Pissarides 2000). A double coincidence problemmakes Fiat Money necessary as a medium of exchange. In the long-run, a rise inthe rate of money growth leads to higher inflation and higher...

We build a theoretical model to study whether a minimum wage can be welfare-improving ifit is implemented in conjunction with an optimized nonlinear income tax. We consider thisissue in a framework where search frictions on the labor market generate unemployment.Workers differ in productivity....

We analyze a model of "postelection politics", in which (unlike in the more common Downsian models of "preelection politics") politicians cannot make binding commitments prior to elections. The game begins with an incumbent politician in office, and voters adopt reelection strategies that are...

In this paper, we investigate whether unemployment benefits should decrease with the unemployment spell in a model where both job search intensity and wages are endogenous. Wages are set by collective agreements bargained by insiders. It is shown that a more declining time sequence of...

We estimate the responses of gross labor income with respect to marginal and average net-of-tax rates in France over the period 2003-2006. We exploit a series of reforms to the income-tax and payroll-tax schedules affecting individuals who earn less than twice the minimum wage. Our estimate for...

We show that the domestic output increases with a foreign country's structural reform and decreases with foreign country’s fiscal policy. Hence, when governments act non-cooperatively, they implement too low structural reforms and too much fiscal policies.

[fre] Cet article propose une synthèse de la littérature théorique sur les allocations chômage. Nous recensons d'abord les mécanismes par lesquels une hausse des allocations chômage peut aggraver le chômage. Nous énumérons ensuite différents arguments pour justifier que les allocations...

[fre] Nous comparons les conséquences de politiques de réduction des charges patronales sur les bas salaires et de politiques d'incitation au travail, du type prime pour l'emploi, dans un modèle dynamique où le chômage frictionne! et les comportements de recherche d'emploi sont...