Land prices and unemployment

• 成果类型: Article
• 署名作者: Liu, Zheng; Miao, Jianjun; Zha, Tao
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - San Francisco; Boston University; Central University of Finance & Economics; Zhejiang University; Federal Reserve System - USA; Federal Reserve Bank - Atlanta; Emory University; National Bureau of Economic Research
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.05.001
• 发表日期: 2016
• 页码: 86-105
• 关键词: Housing and labor markets; Labor channel; Real wage rigidity; Intensive and extensive margins; unemployment

摘要

We integrate the housing market and the labor market in a dynamic general equilibrium model with credit and search frictions. We argue that the labor channel, combined with the standard credit channel, provides a strong transmission mechanism that can deliver a potential solution to the Shimer (2005) puzzle. The model is confronted with U.S. macroeconomic time series. The estimation results account for two prominent facts observed in the data. First, land prices and unemployment move in opposite directions over the business cycle. Second, a shock that moves land prices also generates the observed large volatility of unemployment. (C) 2016 Elsevier B.V. All rights reserved.