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dc.contributor.authorWasmer, Etienneen_US
dc.date.accessioned2011-10-06en_US
dc.date.accessioned2011-11-23T11:40:18Z-
dc.date.available2011-11-23T11:40:18Z-
dc.date.issued2011en_US
dc.identifier.piurn:nbn:de:101:1-201106202111en_US
dc.identifier.urihttp://hdl.handle.net/10419/51952-
dc.description.abstractUnemployment may depend on equilibrium in other markets than the labor markets. This paper adresses this old idea by introducing search frictions on several markets: in a model of credit and labor market imperfections as in Wasmer and Weil (2004), I further introduce search on the goods market. The model can be solved by blocks: on two of the three markets, the relevant market tightness is a constant of parameters. In particular, goods market tightness, expressed as the ratio of unmatched consumers to unmatched firms, is equal to 1 which corresponds to a stochastic Say's law: demand and supply are stochastically in equilibrium. Financial market tightness is also a function of three parameters related to financial frictions. Job creation and employment depend on the equilibrium in the other markets. Reciprocally, higher job destruction implies more volatility of income of individual consumers and higher destruction of consumption matches. This lowers profits and further reduces job creation. Finally, there are complementarities between frictions in each market: in particular, the marginal effect of financial frictions on equilibrium unemployment is amplified by goods market frictions and vice versa.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion paper series // Forschungsinstitut zur Zukunft der Arbeit 5758en_US
dc.subject.jelJ6en_US
dc.subject.jelE12en_US
dc.subject.jelE13en_US
dc.subject.ddc330en_US
dc.subject.keywordsearchen_US
dc.subject.keywordmatchingen_US
dc.subject.keywordunemploymenten_US
dc.subject.keywordgoods market imperfectionsen_US
dc.titleA steady-state model of a non-walrasian economy with three imperfect marketsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn669432369en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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