EconStor >
ifo Institut – Leibniz-Institut für Wirtschaftsforschung an der Universität München >
CESifo Working Papers, CESifo Group Munich >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/30747
  
Title:Monetary persistence and the labor market: A new perspective PDF Logo
Authors:Lechthaler, Wolfgang
Merkl, Christian
Snower, Dennis J.
Issue Date:2010
Series/Report no.:CESifo working paper 2935
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.
Subjects:monetary persistence
labor market
hiring and firing costs
JEL:A00
A10
A11
E24
E32
E52
J23
Document Type:Working Paper
Appears in Collections:Publikationen von Forscherinnen und Forschern des IfW
CESifo Working Papers, CESifo Group Munich

Files in This Item:
File Description SizeFormat
620106956.pdf502.7 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/30747

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.