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

We study optimal monetary policy and welfare properties of a DSGE model with a labor selection process, labor turnover costs and Nash...

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

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

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

The recent Great Recession had very heterogeneous effects on the labor markets in industrialized countries. We analyze the role of...

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

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 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...

It is common knowledge that the standard New Keynesian model is not able to generate a persistent response in output to temporary...

This paper explores the influence of wage and price staggering on monetary persistence. We show that, for plausible parameter values,...

In this paper we propose a novel way to model the labor market in the context of a New-Keynesian general equilibrium model,...

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

Several contributions have recently assessed the size of fiscal multipliers both in RBC models and in New Keynesian models. This paper...