@techreport{Dromel2009Credit,
abstract = {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 introduce credit constraints. We show these credit constraints not only increase steady-state unemployment, but also slow down the transitional dynamics. We then provide an empirical illustration based on a country panel dataset of 20 OECD countries. Our results suggest that credit market imperfections significantly increase the persistence of unemployment.},
address = {Bonn},
author = {Nicolas Dromel and Elie Kolakez and Etienne Lehmann},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {E24; E44; J08; J64; 330; Credit markets; labor markets; unemployment; credit constraints; search frictions; Arbeitslosigkeit; Hysteresis; Verschuldungsrestriktion; Theorie der Arbeitslosigkeit; Arbeitsuche; Sch\"{a}tzung; OECD-Staaten},
language = {eng},
note = {urn:nbn:de:101:1-20091104951},
number = {4501},
publisher = {IZA},
title = {Credit constraints and the persistence of unemployment},
type = {IZA Discussion Papers},
url = {http://hdl.handle.net/10419/36120},
year = {2009}
}
