Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/62704
Authors: 
Burda, Michael C.
Weder, Mark
Year of Publication: 
2001
Series/Report no.: 
Discussion Papers, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes 2001,49
Abstract: 
This paper evaluates complementarities of labor market institutions and the business cycle in the context of a stochastic dynamic general equilibrium model economy. Matching between workers and vacancies with endogenous time spent in search, Nash{bargained wages, payroll taxation, and differential support for unemployed labor in search and leisure are central aspects of the model. For plausible regions of the policy and institutional parameter space, the model exhibits more persistence than standard RBC models and can exhibit indeterminacy of rational expectations paths without increasing returns in production. Furthermore, labor market institutions act in a complementary fashion in generating these effects.
Subjects: 
Business Cycles
European Labor Markets
Indeterminacy
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

Files in This Item:
File
Size
754.29 kB





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