Equilibrium Unemployment

João F. Gomes (), Jeremy Greenwood () and Sergio Rebelo ()

No 479, RCER Working Papers from University of Rochester - Center for Economic Research (RCER)

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.

Keywords: Search; Incomplete Markets; Business Cycles; Unemployment Insurance; Welfare Costs of Business Cycles. (search for similar items in EconPapers)
JEL-codes: E24 E32 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge
Date: 2001-02
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Forthcoming, Journal of Monetary Economics

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Related works:
Working Paper: Equilibrium Unemployment (1997)
Working Paper: Equilibrium Unemployment (1997)
Journal Article: Equilibrium unemployment (2001)
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Persistent link: http://EconPapers.repec.org/RePEc:roc:rocher:479

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