Persistence and volatility of Beveridge cycles

Florian Sniekers

No 16-05, CeNDEF Working Papers from Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance

Abstract: This paper explains the cyclical behavior of the fluctuations in unemployment and vacancies by demand externalities. Adding such externalities to an otherwise standard search and matching model reduces the need for exogenous shocks in explaining these fluctuations. Under plausible parameter values, the equilibrium dynamics include a stable limit cycle that resembles the empirically observed counterclockwise cycles around the Beveridge curve. Calibrated to the duration of the business cycle, these endogenous `Beveridge cycles' are as persistent as the data, without losing any of the ampli cation of the standard model.

Date: 2016
New Economics Papers: this item is included in nep-dge
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Related works:
Journal Article: PERSISTENCE AND VOLATILITY OF BEVERIDGE CYCLES (2018)
Working Paper: Persistence and volatility of Beveridge cycles (2014)
Working Paper: Endogenous Beveridge cycles and the volatility of unemployment (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:ams:ndfwpp:16-05

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