@techreport{Wasmer2000Macroeconomics,
abstract = {Labor market frictions are not the only possible factor responsible for high unemployment. Credit
market imperfections, driven by microeconomic frictions and impacted upon by macroeconomic
factors such as monetary policy, could also be to blame. This paper shows that labor and credit
market imperfections interact in a complementary way - which may explain why European and
US unemployment differ so much when labor markets have become more similar at the margin
in Europe and the US.
To develop this idea, we build a search model that treats credit and labor market imperfections
in a symmetrical way. We introduce specificity in credit relationships, and assume that credit to
potential entrepreneurs is rationed due to endogenous search frictions, in the spirit of Diamond
(1990). These imperfections mirror the job search frictions that we introduce, \textendash{} la Mortensen-
Pissarides (1994), in the labor market.},
author = {Etienne Wasmer and Philippe Weil},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E51; J64; G24; 330; Credit and search frictions; unemployment; monetary policy; Arbeitslosigkeit; Kreditmarkt; Kreditrationierung; Suchtheorie; Arbeitsmarkttheorie; Arbeitsuche; Informationskosten; Makro\"{o}konomischer Einflu\ss{}; Sch\"{a}tzung; Theorie; OECD-Staaten},
language = {eng},
number = {179},
title = {The Macroeconomics of Labor and Credit Market Imperfections},
type = {IZA Discussion paper series},
url = {http://hdl.handle.net/10419/21022},
year = {2000}
}
