Credit, vacancies and unemployment fluctuations
نویسندگان
چکیده
منابع مشابه
Credit, 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, Vacancies, Wages
1045 We have all visited several stores to check prices and/or to find the right item or the right size. Similarly, it can take time and effort for a worker to find a suitable job with suitable pay, and for employers to receive and evaluate applications for job openings. Search theory explores the workings of markets once facts such as these are incorporated into the analysis. Adequate analysis...
متن کاملUnemployment 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 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 کاملIndeterminacy, Bifurcations, and Unemployment Fluctuations
We incorporate imperfectly insured unemployment in the finance constrained economy proposed by Woodford (1986), by introducing unions and unemployment benefits financed by labor taxation. We show that this simple extension of the Woodford model changes drastically its stability conditions and local dynamics around the steady state. In fact, in contrast to related models in the literature, we fi...
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ژورنال
عنوان ژورنال: Review of Economic Dynamics
سال: 2014
ISSN: 1094-2025
DOI: 10.1016/j.red.2013.10.001