This paper analyzes Germany’s unusual labor market experience during the Great Recession. We estimate a general equilibrium model with...

Recession has put many Eurozone labor markets under stress, particularly those in Mediterranean countries that have inflexible...

Many labor market models use both idiosyncratic productivity and a vacancy free entry condition. This paper shows that these two...

This paper characterizes long-run and short-run optimal fiscal policy in the labor selection framework. In a calibrated non-Ramsey...

This paper is the first to show theoretically and empirically how firms' production technology affects the choice of their preferred...

This paper characterizes e fficient labor-market allocations in a labor selection model. The model's crucial aspect is cross-sectional...

In the Great Recession most OECD countries used short-time work (publicly subsidized working time reductions) to counteract a steep...

This paper analyzes the effects of different labor market institutions on inflation and output volatility. The eurozone offers an...

This paper shows that the German labor market is more volatile than the US labor market. Specifically, the volatility of the cyclical...

In the standard New Keynesian sticky price model the central bank faces no contradiction between the stabilization of inflation and...

This paper provides a theoretical and quantitative analysis of various types of wellknown employment subsidies. Two important...

This paper analyzes the role of banks’ regulatory capitalization in the transmission of monetary policy. We use a confidential dataset...

The East German labor market has hardly made any progress since German reunification, despite massive migration flows and support from...

The East German labor market has hardly made any progress since German reunification, despite massive migration flows and support from...

Firms select not only how many, but also which workers to hire. Yet, in standard search models of the labor market, all workers have...

The labor market in Germany is more sclerotic and volatile than in the US. We show theoretically that sclerosis and large volatilities...

This paper analyzes the cost of disin‡ation under real wage rigidities in a micro- founded New Keynesian model. Unlike Blanchard and...

This paper analyzes the cost of disinflations under real wage rigidities in a micro-founded New Keynesian model. The consensus is that...

This paper analyzes the cost of disinflations under real wage rigidities in a micro-founded New Keynesian model. The consensus is that...

We study the design of optimal monetary policy in a New Keynesian model with labor turnover costs in which wages are set according to...