Finance Papers

Document Type

Journal Article

Date of this Version

2001

Publication Source

Journal of Monetary Economics

Volume

48

Issue

1

Start Page

109

Last Page

152

DOI

10.1016/S0304-3932(01)00071-X

Abstract

A search-theoretic model of equilibrium unemployment is constructed and shown to be consistent with the key regularities of the labor market and business cycle. The two distinguishing features of the model are: (i) the decision to accept or reject jobs is modeled explicitly, and (ii) markets are incomplete. The model is well suited to address a number of interesting policy questions. Two such applications are provided: the impact of unemployment insurance, and the welfare costs of business cycles.

Copyright/Permission Statement

© 2001. This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/.

Share

COinS
 

Date Posted: 27 November 2017

This document has been peer reviewed.