FIRM DYNAMICS WITH FRICTIONAL PRODUCT AND LABOR MARKETS

• 成果类型: Article
• 署名作者: Kaas, Leo; Kimasa, Bihemo
• 署名单位: Goethe University Frankfurt; University of Konstanz
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/iere.12510
• 发表日期: 2021
• 页码: 1281-1317
• 关键词: Uncertainty shocks; search; unemployment; aggregate; turnover; demand; MODEL

摘要

We analyze the joint dynamics of prices, productivity, and employment across firms, building a dynamic equilibrium model of heterogeneous firms who compete for workers and customers in frictional labor and product markets. Using panel data on prices and output for German manufacturing firms, the model is calibrated to evaluate the quantitative contributions of productivity and demand for the labor market. Product market frictions decisively dampen the firms' employment adjustments to productivity shocks. We further analyze the impact of aggregate shocks to the first and second moments of productivity and demand and relate them to business-cycle features in our data.