An estimated new-Keynesian model with unemployment as excess supply of labor

Casares Polo, MiguelMoreno Pérez, AntonioVázquez, Jesús2016-05-102016-05-102010https://academica-e.unavarra.es/handle/2454/20632As one alternative to search frictions, wage stickiness is introduced in a New-Keynesian model to generate endogenous unemployment fluctuations due to mismatches between labor supply and labor demand. The effects on an estimated New-Keynesian model for the U.S. economy are: i) the Calvo-type probability on wage stickiness rises, ii) the labor supply elasticity falls, iii) the implied second-moment statistics of the unemployment rate provide a reasonable match with those observed in the data, and iv) wage-push shocks, demand shifts and monetary policy shocks are the three major determinants of unemployment fluctuations.45 p.application/pdfengCC Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0)Sticky wagesUnemploymentBusiness cyclesNew-Keynesian modelsAn estimated new-Keynesian model with unemployment as excess supply of laborinfo:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/openAccess