Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/28377
Authors: 
Wesselbaum, Dennis
Year of Publication: 
2009
Series/Report no.: 
Kiel Working Paper 1550
Abstract: 
This paper introduces productivity dependent firing costs in an endogenous separation New Keynesian model. By strictly respecting the bonding critique, we show that firing costs tend to increase the performance of the model along the labor market dimension but fail along the persistence dimension. Furthermore, we show that on the one hand the model needs high - unrealistic high - values of the firing costs to generate the Beveridge curve while on the other hand we are not able to find this relation in the data.
Subjects: 
Beveridge Curve
Productivity Dependent Firing Costs
JEL: 
E24
E32
J64
Document Type: 
Working Paper

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