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:	Publication
Language:	English
Place of publication:	HAL CCSD 25.10.2019
Data of publication:	2019-10-25
Subjects:	JEL: J - Labor and Demographic Economics/J.J6 - Mobility, Unemployment, Vacancies, and Immigrant Workers/J.J6.J64 - Unemployment: Models, Duration, Incidence, and Job Search JEL: E - Macroeconomics and Monetary Economics/E.E3 - Prices, Business Fluctuations, and Cycles/E.E3.E32 - Business Fluctuations • Cycles financial friction,labor market search,business cycle,Welfare labor market search Welfare financial friction [SHS.ECO]Humanities and Social Sciences/Economics and Finance JEL: G - Financial Economics/G.G2 - Financial Institutions and Services/G.G2.G21 - Banks • Depository Institutions • Micro Finance Institutions • Mortgages business cycle
Online Access:	available in Bonn?
Database:	OpenAIRE (Open Access) OpenAIRE Database information Databases - DBIS