Monetary Persistence and the Labor Market: A New Perspective

Journal article


Publication Details

Author(s): Merkl C, Lechthaler W, Snower D
Journal: Journal of Economic Dynamics & Control
Publisher: Elsevier
Publication year: 2010
Volume: 34
Journal issue: 5
Pages range: 968-983
ISSN: 0165-1889
Language: English


Abstract


In this paper we propose a novel way to model the labor market in the context of a New-Keynesian general equilibrium model, incorporating labor market frictions in the form of hiring and firing costs. We show that such a model is able to replicate many important stylized facts of the business cycle. The reactions to monetary and real shocks become much more sluggish. Job creation and job destruction are negatively correlated. And the volatility of unemployment is much larger than in the standard search and matching model.



FAU Authors / FAU Editors

Merkl, Christian Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Makroökonomik


How to cite

APA:
Merkl, C., Lechthaler, W., & Snower, D. (2010). Monetary Persistence and the Labor Market: A New Perspective. Journal of Economic Dynamics & Control, 34(5), 968-983. https://dx.doi.org/10.1016/j.jedc.2010.01.004

MLA:
Merkl, Christian, Wolfgang Lechthaler, and Dennis Snower. "Monetary Persistence and the Labor Market: A New Perspective." Journal of Economic Dynamics & Control 34.5 (2010): 968-983.

BibTeX: 

Last updated on 2018-19-04 at 02:44