Welfare Cost of Fluctuations When Labor Market Search Interacts with Financial Frictions

We study the welfare costs of business cycles in a search and matching model with financial frictions. The model replicates the volatility on labor and financial markets. Business cycle costs are sizable. Indeed, the interactions between labor market and financial frictions magnify the impact of sho...

Full description

Saved in:
Bibliographic details
Volume: 51
Main Author: ILIOPULOS, ELENI
LANGOT, FRANÇOIS
SOPRASEUTH, THEPTHIDA
Format: Journal Article
Language: English
Zielgruppe: Academic
Place of publication: HOBOKEN WILEY 01.12.2019
Wiley Subscription Services, Inc
published in: Journal of money, credit and banking Vol. 51; no. 8; pp. 2207 - 2237
Data of publication: December 2019
ISSN: 0022-2879
1538-4616
EISSN: 1538-4616
Discipline: Economics
Business
Bibliography: We thank Guido Ascari, Paul Beaudry, Florin Bilbiie, Matteo Cacciatore, Daniel Cohen, Martin Ellison, Andrea Ferrero, Pietro Garibaldi, Céline Poilly, Nicolas Petrosky‐Nadeau, Vincenzo Quadrini, Xavier Ragot, Federico Ravenna, Gilles Saint‐Paul, Etienne Wasmer, Pierre‐Olivier Weill, and Francesco Zanetti for helpful comments as well as seminar participants at Paris School of Economics macroworkshop, Cepremap, University of Lille I, University of Lyon ‐ Gate, HEC Montreal, T2M Conference, Search and Matching Annual Conference, ScPo Conference in honor of C. Pissarides, TEPP Conference, SED Conference, and Oxford macroeconomics seminar. E. Iliopulos and T. Sopraseuth thank Labex MME‐DII (ANR‐11‐LBX‐0023‐01). F. Langot acknowledges the support of PANORisk. T. Sopraseuth acknowledges the support of the
Institut Universitaire de France
.
Subjects:
E32
G21
J64
E32
G21
J64
Online Access: Fulltext
Database: Web of Knowledge
Web of Science - Social Sciences Citation Index – 2019
Social Sciences Citation Index
Web of Science
CrossRef
Database information Databases - DBIS