| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5059985 | Economics Letters | 2013 | 6 Pages |
Abstract
⺠I use a simple business cycle model with credit constraints on firms. ⺠The credit constraint lowers labor and increases the labor wedge. ⺠The U.S. labor market and the credit spread are strongly correlated. ⺠The jobless recoveries were associated with slow declines in the credit spread. ⺠The credit constraint is akin to labor-income taxation.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Salem Abo-Zaid,