منابع مشابه
Unemployment and Credit Risk
Corporate bond yields are sensitive to labor market conditions. During the 1929-2015 period, a one percentage point increase in the unemployment rate is associated with a widening of the Baa-Aaa credit spread by 13 basis points. This paper explores the impact of labor market conditions on credit risk, by incorporating defaultable debt into an otherwise standard Diamond-MortensenPissarides labor...
متن کاملCredit, Vacancies and Unemployment Fluctuations
Propagation in equilibrium models of search unemployment is significantly altered when vacancy costs require some external financing on frictional credit markets. The easing of financing constraints during an expansion reduces the opportunity cost of resources allocated to job creation, raising the elasticity of market tightness through (i) a cost channel, increasing incentive to recruit for a ...
متن کاملUnemployment Insurance and Consumer Credit
This paper examines the impact of unemployment insurance (UI) on credit markets. Exploiting heterogeneity in the generosity of unemployment insurance across US states and over time, we find that UI helps the unemployed avoid defaulting on their debt. For every $1,000 increase in maximum UI benefits, mortgage delinquency drops by 2% and the eviction rate drops by 10% among unemployed homeowners....
متن کاملCredit Market Imperfections and Persistent Unemployment¤
This paper develops the thesis that credit market frictions may be an important contributor to high unemployment in Europe. When a change in the technological regime necessitates the creation of new "rms, this can happen relatively rapidly in the U.S. where credit markets function e$ciently. In contrast, in Europe, job creation is constrained by credit market imperfections, so unemployment rise...
متن کاملProfit Sharing, Credit Market Imperfections and Equilibrium Unemployment
We investigate the interaction between labour and credit market imperfections for equ ilibrium unemployment in the presence of profit sharing. Our analysis highlights the critical role of the outside option available of employees for the evaluation of the employment implications of intensified credit market competition. In a partial equilibrium with exogenous outside options increased bargainin...
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ژورنال
عنوان ژورنال: International Review of Economics & Finance
سال: 2018
ISSN: 1059-0560
DOI: 10.1016/j.iref.2018.06.004