An estimated small open economy model with frictional unemployment

Julien Albertini, Gunes Kamber and Michael Kirker

No DP2011/04, Reserve Bank of New Zealand Discussion Paper Series from Reserve Bank of New Zealand

Abstract: This paper investigates labour market dynamics in New Zealand by estimating a structural small open economy model enriched with standard search and matching frictions in the labour market. We show that the model its the business cycle features of key macroeconomic variables reasonably well and provides an appealing monetary transmission mechanism. We then extend our analysis to understand the driving forces behind labour market variables. Our findings suggest that the bulk of variation in labour market variables is solely explained by disturbances pertaining to the labour market.

JEL-codes: E32 J6 (search for similar items in EconPapers)
Pages: 39 p.
Date: 2011-08
New Economics Papers: this item is included in nep-cba, nep-dge, nep-lab and nep-mac
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Citations: View citations in EconPapers (1)

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Related works:
Journal Article: ESTIMATED SMALL OPEN ECONOMY MODEL WITH FRICTIONAL UNEMPLOYMENT (2012)
Working Paper: Estimated Small Open Economy Model with Frictional Unemployment (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:nzb:nzbdps:2011/04

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