INDETERMINACY, BIFURCATIONS, AND UNEMPLOYMENT FLUCTUATIONS
نویسندگان
چکیده
منابع مشابه
Indeterminacy, 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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Using an efficiency-wage model, we examine the relationship between indeterminacy and unemployment insurance. It is shown that the less unemployment insurance is, the more likely equilibrium is to be indeterminate. Equilibrium can be indeterminate even without externalities or increasing returns, which makes a sharp contrast to the recent literature on indeterminacy. Our result is based on the ...
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In this paper, we extend the finance constrained economy proposed by Woodford (1986) to incorporate unions, imperfectly insured unemployment and transfers. We show that this simple extension of the Woodford model changes drastically its stability conditions and local dynamics around the deterministic steady state. By contrast to most related models in the literature, we find that sunspots and d...
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ژورنال
عنوان ژورنال: Macroeconomic Dynamics
سال: 2008
ISSN: 1365-1005,1469-8056
DOI: 10.1017/s1365100508070211