This paper develops a model of unemployment fluctuations. The model keeps the architecture of the Barro and Grossman … flexible to completely rigid. With some price rigidity, aggregate demand influences unemployment through a simple mechanism … thus increases labor demand, which in turn reduces unemployment. We use the comparative-statistics predictions of the model …

This paper develops a model of unemployment fluctuations. The model keeps the architecture of the Barro and Grossman … flexible to completely rigid. With some price rigidity, aggregate demand influences unemployment through a simple mechanism … thus increases labor demand, which in turn reduces unemployment. We use the comparative-statistics predictions of the model …

This article develops a model of unemployment fluctuations. The model keeps the architecture of the general … affects unemployment as follows. An increase in aggregate demand leads firms to find more customers. This reduces the idle … time of their employees and thus increases their labor demand. This in turn reduces unemployment. We combine the …

We present a static model of aggregate demand and unemployment. The economy has a nonproduced good, a produced good … prices as parameters. We obtain the following results: (1) unemployment and unsold production prevail in equilibrium; (2 … and reduce unemployment. …

This article develops a model of unemployment fluctuations. The model keeps the architecture of the general … affects unemployment as follows. An increase in aggregate demand leads firms to find more customers. This reduces the idle … time of their employees and thus increases their labor demand. This in turn reduces unemployment. We combine the …

Keynes (1936) said that shortage of money caused by hoarding or failure to invest led to unemployment, but Lucas (1972 …) said that money does not affect unemployment. The tables have now turned. Gani (2003) produced a model of indirect trade in … which money is necessary as a means of payment. Involuntary unemployment occurs under indirect exchange, just when the …

be called Embodied Human Capital Unemployment. This is a phenomenon not seen before in social history, simply because … around for a while as we all live our lives. I illustrate the relevance of this new concept of unemployment to the U …

This paper models unemployment as the result of matching frictions and job rationing. Job rationing is a shortage of … returns to labor. During recessions, job rationing is acute, driving the rise in unemployment, whereas matching frictions … contribute little to unemployment. Intuitively, in recessions jobs are lacking, the labor market is slack, recruiting is easy and …