Equilibrium unemployment

Joao Gomes; Jeremy Greenwood; Sergio Rebelo

doi:10.1016/S0304-3932(01)00071-X

Equilibrium unemployment

Joao Gomes^*, Jeremy Greenwood, Sergio Rebelo

^*Corresponding author for this work

Finance

Research output: Contribution to journal › Article › peer-review

64 Scopus citations

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.

Original language	English (US)
Pages (from-to)	109-152
Number of pages	44
Journal	Journal of Monetary Economics
Volume	48
Issue number	1
DOIs	https://doi.org/10.1016/S0304-3932(01)00071-X
State	Published - Aug 2001

Keywords

Business cycles
E24
E32
Incomplete markets
Search
Unemployment insurance
Welfare costs of business cycles

ASJC Scopus subject areas

Finance
Economics and Econometrics

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1016/S0304-3932(01)00071-X

Cite this

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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.",

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AU - Rebelo, Sergio

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AB - 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.

KW - Business cycles

KW - E24

KW - E32

KW - Incomplete markets

KW - Search

KW - Unemployment insurance

KW - Welfare costs of business cycles

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Equilibrium unemployment

Abstract

Keywords

ASJC Scopus subject areas

UN SDGs

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