Anticipated growth and business cycles in matching models

• 成果类型: Article
• 署名作者: Den Haan, Wouter J.; Kaltenbrunner, Georg
• 署名单位: University of Amsterdam; Vrije Universiteit Amsterdam; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2009.03.003
• 发表日期: 2009
• 页码: 309-327
• 关键词: Pigou cycles; labor force participation; productivity growth

摘要

In a business cycle model that incorporates a standard matching framework, employment increases in response to news shocks, even though the wealth effect associated with the increase in expected productivity reduces labor force participation. The reason is that the matching friction induces entrepreneurs to increase investment ill new projects and vacancies early. If there is underinvestment in new projects ill the competitive equilibrium, then the efficiency gains associated with all increase ill employment make it possible that Consumption, employment, Output, as well as the investment in new and existing projects jointly increase long before the actual increase in productivity materializes. If there is no underinvestment, then investment in existing projects decreases, but total investment, consumption, employment, and Output Still jointly increase. (C) 2009 Elsevier B.V. All rights reserved.