The (Ir)relevance of Real Wage Rigidity in the New Keynesian Model with Search Frictions

By Michael U. Krause, Thomas A. Lubik. 2007

554 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/85fa6eacd378a32262bb3ee12b0d0ef3c650988e

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In Economics and Econometrics

Citations in the corpus

Ramsey Monetary Policy With Labour Market Frictions (2009, methodology): “The laboratory economy that I use is very close to the one proposed in Krause and Lubik (2005).”
The Role of Real Wage Rigidity and Labor Market Frictions for Unemployment and Inflation Dynamics (2005, unknown): “22 This result is consistent with the findings of Krause and Lubik (2003).”
An Estimated Monetary DSGE Model with Unemployment and Staggered Nominal Wage Bargaining (2008, background): “(25) The hiring rate thus depends on the discounted stream of earnings and savings on adjustment costs.”
Inflation Dynamics with Search Frictions: A Structural Econometric Analysis (2008, background): “The other is that intra- rm bargaining is not likely to signi cantly a¤ect business cycle dynamics, as shown in Krause and Lubik (2007b).”
The Role of Labor Markets for Euro Area Monetary Policy (2009, unknown): “We build a closed-economy, single-country New Keynesian model for the euro area, which is augmented by Mortensen and Pissarides (1994) type matching frictions. Our model incorporates the following features. First, we build on Trigari’s (2006) right-to-manage framework to allow for a direct channel f”
Some Fiscal Calculus (2010, background): “e, gt ≡ ḡ + χ0ǫg,0 for all t (10) Second, I consider an announced permanent increase known at date 0, gt ≡ ḡ + χ4ǫg,0 for all t ≥ t0 = 4, else:gt ≡ ḡ (11) Finally, I seek a simple characterization of anticipated dynamics shown in figure 6.”
Equilibrium Unemployment, Job Flows and Inflation Dynamics (2009, unknown): “yt = ∙R 1 0 y ε−1 ε it di ̧ ε ε−1 , (28)”
Optimal Monetary Policy Rules with Labor Market Frictions (2008, unknown): “Aggregate output is obtained by aggregating production of individual firms and by subtracting the resources wasted into the search activity and the cost of adjusting prices: yt = ntzt − κvt − ψ 2 μ pt pt−1 − 1 ¶2 y t (26)”
Resuscitating the Wage Channel in Models with Unemployment Fluctuations (2008, methodology): “Krause and Lubik (2007) show that under this setup wages do not have a direct impact on marginal costs.”
Labour Market Institutions and Aggregate Fluctuations in a Search and Matching Model (2011, unknown): “As pointed out by Krause and Lubik (2007), the search and matching framework breaks this relationship becausewages share the surplus of an employment relationship.”
Search and matching frictions and optimal monetary policy (2008, background): “(1 )S it = S it : (28) 15Staggered wage bargaining a la Calvo has been rst introduced by Gertler and Trigari (2006), in a model that abstracts from nominal variables.”