کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
968015 931433 2007 22 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
The (ir)relevance of real wage rigidity in the New Keynesian model with search frictions
موضوعات مرتبط
علوم انسانی و اجتماعی اقتصاد، اقتصادسنجی و امور مالی اقتصاد و اقتصادسنجی
پیش نمایش صفحه اول مقاله
The (ir)relevance of real wage rigidity in the New Keynesian model with search frictions
چکیده انگلیسی

We develop a New Keynesian model with search and matching frictions in the labor market. We show that the model generates counterfactual labor market dynamics. In particular, it fails to generate the negative correlation between vacancies and unemployment in the data, i.e., the Beveridge curve. Introducing real wage rigidity leads to a negative correlation, and increases the magnitude of labor market flows to more realistic values. However, inflation dynamics are only weakly affected by real wage rigidity. The reason is that labor market frictions give rise to long-run employment relationships. The measure of real marginal costs that is relevant for inflation in the Phillips curve contains a present value component that varies independently of the real wage.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Monetary Economics - Volume 54, Issue 3, April 2007, Pages 706–727
نویسندگان
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