A new Keynesian analysis of industrial employment fluctuations
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Fecha
2009Autor
Versión
Acceso abierto / Sarbide irekia
Tipo
Documento de trabajo / Lan gaiak
Impacto
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nodoi-noplumx
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Resumen
This paper describes a model with sticky prices, search frictions and hours-clearing wages that provides firm differentiation across several dimensions: price, output, wage, employment and hours per worker. The connection between pricing and hiring decisions results in firm-level employment fluctuations that depend upon sticky prices, search costs, demand elasticity and labor supply elasticity. T ...
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This paper describes a model with sticky prices, search frictions and hours-clearing wages that provides firm differentiation across several dimensions: price, output, wage, employment and hours per worker. The connection between pricing and hiring decisions results in firm-level employment fluctuations that depend upon sticky prices, search costs, demand elasticity and labor supply elasticity. The calibrated model is able to match average US industrial employment volatility when assuming a small industrial size, providing one possible answer to Shimer (2005a)’s puzzle. [--]
Materias
Search frictions,
Sticky prices,
Industrial employment
Serie
Documentos de Trabajo DE - ES Lan Gaiak /
0903
Departamento
Universidad Pública de Navarra. Departamento de Economía /
Nafarroako Unibertsitate Publikoa. Ekonomia Saila
Entidades Financiadoras
The author would like to acknowledge financial support from Fundación Ramón Areces (VII Concurso Investigación en Economía) and the Spanish government (research project ECO2008-02641 from Ministerio de Ciencia e Innovación).