Hysteresis in Unemployment and Jobless Recoveries /

This paper develops and estimates a general equilibrium rational expectations model with search and multiple equilibria where aggregate shocks have a permanent effect on the unemployment rate. If agents' wealth decreases, the unemployment rate increases for a potentially indefinite period. This...

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প্রধান লেখক: Plotnikov, Dmitry
বিন্যাস: পত্রিকা
ভাষা:English
প্রকাশিত: Washington, D.C. : International Monetary Fund, 2014.
মালা:IMF Working Papers; Working Paper ; No. 2014/077
অনলাইন ব্যবহার করুন:Full text available on IMF
বিবরন
সংক্ষিপ্ত:This paper develops and estimates a general equilibrium rational expectations model with search and multiple equilibria where aggregate shocks have a permanent effect on the unemployment rate. If agents' wealth decreases, the unemployment rate increases for a potentially indefinite period. This makes unemployment rate dynamics path dependent as in Blanchard and Summers (1987). I argue that this feature explains the persistence of the unemployment rate in the U.S. after the Great Recession and over the entire postwar period.
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দৈহিক বর্ননা:1 online resource (37 pages)
বিন্যাস:Mode of access: Internet
আইএসএসএন:1018-5941
প্রবেশাধিকার:Electronic access restricted to authorized BRAC University faculty, staff and students