Economics at your fingertips  

Reallocation shocks, persistence and nominal rigidities

Francesco Furlanetto () and Nicolas Groshenny

Economics Letters, 2016, vol. 141, issue C, 151-155

Abstract: We reconsider the role of reallocation shocks in a simple New Keynesian model with search and matching frictions. The sign of the conditional correlation between unemployment and vacancies depends on the degree of price rigidity and on the persistence of the shock. Therefore, a non negligible role for reallocation shocks in driving business cycle fluctuations cannot be ruled out on theoretical grounds.

Keywords: Search and matching frictions; Matching efficiency; Reallocation shocks (search for similar items in EconPapers)
JEL-codes: E32 C51 C52 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

Page updated 2019-10-11
Handle: RePEc:eee:ecolet:v:141:y:2016:i:c:p:151-155