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 à la Kiyotaki & Moore (1997). We investigate the mechanisms thatnallow the model to replicate the volatility on labor and financial markets and show that business cycle costs are sizable. We fir...

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Bibliographic details
Main Author: Iliopulos, Eleni
Langot, Francois
Sopraseuth, Thepthida
Format: Paper
Language: English
Subjects:
Online Access: available in Bonn?
Database: HAL-SHS: Archive ouverte en Sciences de l'Homme et de la Société
HAL-SHS: Archive ouverte en Sciences de l'Homme et de la Société (Open Access)
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