Labor Selection, Turnover Costs, and Optimal Monetary Policy
We study optimal monetary policy and welfare properties of a dynamic stochastic general equilibrium (DSGE) model with a labor selection process, labor turnover costs, and Nash bargained wages. We show that our model implies inefficiencies that cannot be offset in a standard wage bargaining regime. W...
|Place of publication:||
HOBOKEN Wiley Subscription Services 01.02.2014
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|published in:||Journal of money, credit and banking Vol. 46; no. 1; pp. 115 - 144|
|Data of publication:||20140201|
A previous draft of this paper has been circulated as “Labor Turnover Costs, Workers' Heterogeneity and Optimal Monetary Policy.” We thank seminar participants at Goethe University Frankfurt, the universities of Bayreuth, Dortmund, and Würzburg, GREQAM, Kiel IfW, University of Rome II, and conference participants at the ECB Wage Dynamics Network, Konstanz seminars in Monetary Theory and Policy, the EES workshop “The Labor Market and the Business Cycle,” the Spring Meeting of Young Economists, the Society for Economic Dynamics, the North American Summer Meeting of the Econometric Society, the ZEW conference on “Recent Developments in Macroeconomics.” We thank Christian Bayer and Felix Hammermann for discussing the paper. We gratefully acknowledge financial support from the Leibniz grant. Christian Merkl thanks the Fritz Thyssen foundation for support during his visit at the NBER. We thank Nina Biljanovska and Tom Schmitz for excellent research assistance.
|Database:||Social Sciences Citation Index
Web of Science - Social Sciences Citation Index - 2014
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