Equilibrium Unemployment, Job Flows and Inflation Dynamics

By A. Trigari. Social Science Research Network, 2009

440 citations recorded by the source corpus.

In order to explain the joint fluctuations of output, inflation and the labor market, this paper develops and estimates a general equilibrium model that integrates a theory of equilibrium unemployment into a monetary model with nominal price rigidities. The estimated model accounts for the responses of employment, hours per worker, job creation, and job destruction to a monetary policy shock. Moreover, search frictions in the labor market generate a lower elasticity of marginal costs with respect to output. This helps to explain the sluggishness of inflation and the persistence of output that are observed in the data. Copyright (c) 2009 The Ohio State University.

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Citations in the corpus

Nominal Wage Rigidities in a New Keynesian Model with Frictional Unemployment (2006, unknown): “Another series of papers - Walsh (2005), Trigari (2004), Moyen and Sahuc (2005) - have studied the role of labor-search frictions for inflation dynamics and the monetary policy transmission mechanism.”
Labour Market Institutions and Aggregate Fluctuations in a Search and Matching Model (2011, unknown): “(2006), Christoffel and Linzert (2005), Krause and Lubik (2007), Trigari (2005) , and Walsh”
Labor Market Search, Sticky Prices, and Interest Rate Policies (2005, unknown): “1 Trigari (2004), in a similar model developed independently, also incorporates an interest rate rule.”
Labor Market Dynamics and the Business Cycle: Structural Evidence for the United States (2007, unknown): “10 Trigari (2004) and Walsh (2000) explore the effects of monetary shocks in the presence of labor market matching.”
Unemployment Fluctuations with Staggered Nash Wage Bargaining (2006, background): “Next, loglinearizing the equation for the contract wage (28) and combining with equation (37) yields: b w∗ t = (1− ρλβ) b w t + ρλβEt b w∗ t+1 + τ ( b wt − b w∗ t ) , (39) where τ reflects the combined influence of the spillover effects:”
Unemployment Fiscal Multipliers (2010, unknown): “ct + it + Et f t;t+1Bt+1g+Bg;t+1 wtnt(1 t ) + rk;tkt + (1 + rt)Bg;t + t t; (35)”
The Role of Labor Markets for Euro Area Monetary Policy (2009, unknown): “We build a New Keynesian model with a non-Walrasian labor market along the lines of Trigari (2006). Calibrating this model to the euro area, we quantitatively assess how the specific institutional aspects of the labor market affect the transmission of business cycle shocks and, most prominently, the”