Unemployment and Business Cycles /
Christiano, Lawrence J.
Unemployment and Business Cycles / Lawrence J. Christiano, Martin S. Eichenbaum, Mathias Trabandt. - Cambridge, Mass. National Bureau of Economic Research 2013. - 1 online resource: illustrations (black and white); - NBER working paper series no. w19265 . - Working Paper Series (National Bureau of Economic Research) no. w19265. .
August 2013.
We develop and estimate a general equilibrium search and matching model that accounts for key business cycle properties of macroeconomic aggregates, including labor market variables. In sharp contrast to leading New Keynesian models, we do not impose wage inertia. Instead we derive wage inertia from our specification of how firms and workers negotiate wages. Our model outperforms a variant of the standard New Keynesian Calvo sticky wage model. According to our estimated model, there is a critical interaction between the degree of price stickiness, monetary policy and the duration of an increase in unemployment benefits.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Unemployment and Business Cycles / Lawrence J. Christiano, Martin S. Eichenbaum, Mathias Trabandt. - Cambridge, Mass. National Bureau of Economic Research 2013. - 1 online resource: illustrations (black and white); - NBER working paper series no. w19265 . - Working Paper Series (National Bureau of Economic Research) no. w19265. .
August 2013.
We develop and estimate a general equilibrium search and matching model that accounts for key business cycle properties of macroeconomic aggregates, including labor market variables. In sharp contrast to leading New Keynesian models, we do not impose wage inertia. Instead we derive wage inertia from our specification of how firms and workers negotiate wages. Our model outperforms a variant of the standard New Keynesian Calvo sticky wage model. According to our estimated model, there is a critical interaction between the degree of price stickiness, monetary policy and the duration of an increase in unemployment benefits.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.