Macroeconomic dynamics in a model of goods, labor, and credit market frictions

• 成果类型: Article
• 署名作者: Petrosky-Nadeau, Nicolas; Wasmer, Etienne
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - San Francisco; Carnegie Mellon University; Institut d'Etudes Politiques Paris (Sciences Po)
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2015.01.006
• 发表日期: 2015
• 页码: 97-113
• 关键词: Goods market search; labor market dynamics; propagation; Credit market frictions

摘要

Goods market frictions drastically change the dynamics of the labor market, both in terms of persistence and volatility. In a model with three imperfect markets - goods, labor, and credit - we find that credit and goods market imperfections are substitutable in raising volatility. Goods market frictions are unique in generating persistence. Two key mechanisms in the goods market generate large hump-shaped responses to productivity shocks: countercyclical goods market tightness and prices alter future profit flows and raise persistence; procyclical search effort of consumers and firms raises amplification. Goods market frictions are thus key in understanding labor market dynamics. (C) 2015 Elsevier B.V. All rights reserved.