Kiel Policy Brief No. 5

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

Recently, the world economy has seen its greatest down turn since World War II. Although not as bad as during the Great Depression,...

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

This paper analyzes the effect of downwards wage rigidity on wage setting, wage compression and firm training. It is shown that...

In a simple model, I demonstrate that the U-shaped relationship between income and income diversification typically found in...

Should governments only purchase domestic goods to increase welfare? And would government spending be higher were it only used for...

In the presence of increasing specialization of workers it becomes more and more difficult for firms to find the most suitable...

In the presence of increasing specialization of workers it becomes more and more difficult for firms to find the most suitable...

Several contributions have recently assessed the size of fiscal multipliers both in RBC models and New Keynesian models. None of the...

In the setup of an overlapping generations model with firm training I analyze the consequences of a tax on capital income. It turns...

Although wage rigidity is among the most prominent subjects in modern economics, its effects on wage compression and firm training...

This paper analyzes the effects of short-time work (i.e., government subsidized working time reductions) on unemployment and output...

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and...

We introduce unemployment and endogenous selection of workers into different skill-classes in a trade model with two sectors and...

Motivated by the increased importance of trade between industrialized and less-developed countries, we build a DSGE model featuring...

This paper studies the effects of protectionism as a business cycle instrument. In normal times, protectionism reduces international...