BUSINESS CYCLES IN THE EQUILIBRIUM MODEL OF LABOR MARKET SEARCH AND SELF-INSURANCE

• 成果类型: Article
• 署名作者: Nakajima, Makoto
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Philadelphia
• 刊物名称: INTERNATIONAL ECONOMIC REVIEW
• ISSN/ISSBN: 0020-6598
• DOI: 10.1111/j.1468-2354.2012.00686.x
• 发表日期: 2012
• 页码: 399-432
• 关键词: cyclical behavior; job destruction; unemployment; RISK

摘要

I introduce risk-aversion, labor-leisure choice, capital, individual productivity shocks, and market incompleteness to the standard model of labor search and matching and investigate the models cyclical properties. I find that the model can generate the observed large volatility of unemployment and vacancies with a reasonable replacement rate of unemployment insurance benefits of 64%. Labor-leisure choice plays a crucial role through additional utility from leisure when unemployed and further amplification from adjustments of hours worked. On the other hand, the borrowing constraint or individual productivity shocks do not significantly affect the cyclical properties of unemployment and vacancies.