| 来源类型 | Discussion paper
|
| 规范类型 | 论文
|
| 来源ID | DP11639
|
| DP11639 The Hiring Frictions and Price Frictions Nexus in Business Cycle Models |
| Eran Yashiv; Renato Faccini
|
| 发表日期 | 2016-11-15
|
| 出版年 | 2016
|
| 语种 | 英语
|
| 摘要 | We study the interactions between hiring frictions and price frictions in business cycle
models. We find that these interactions matter in a significant way for business cycle
fluctuations and for labor market outcomes.
Using a simple DSGE business-cycle model with Diamond-Mortensen-Pisssarides (DMP)
elements, we derive two main results.
First, introducing hiring frictions into a New Keynesian model offsets the effects of price
frictions. As a result, some business cycle outcomes are actually close to the frictionless
New Classical-type outcomes; namely, with moderate hiring frictions the response of employment
to technology shocks is positive, and the effects of monetary policy shocks are
small, if not neutral. Moreover, it generates endogenous wage rigidity.
Second, introducing price frictions into a DMP setting generates amplification of employment
and unemployment responses to technology shocks, as well as hump-shaped
dynamics.
Both results arise through the confluence of frictions. We offer an explanation of the
mechanisms underlying them. |
| 主题 | Labour Economics
; Monetary Economics and Fluctuations
|
| 关键词 | Hiring frictions
Price frictions
New classical model
Business cycles
Mortensen and pissarides (dmp) model
Technology shocks
|
| URL | https://cepr.org/publications/dp11639
|
| 来源智库 | Centre for Economic Policy Research (United Kingdom)
|
| 资源类型 | 智库出版物
|
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/540453
|
推荐引用方式
GB/T 7714 |
Eran Yashiv,Renato Faccini. DP11639 The Hiring Frictions and Price Frictions Nexus in Business Cycle Models. 2016.
|
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