LABOR SUPPLY FACTORS AND ECONOMIC FLUCTUATIONS

Financial Factors and Labor Market Fluctuations (Preliminary)

What are the effects of financial market imperfections on the fluctuations in unemployment and vacancies in the labor market? Standard DSGE models are silent about this since they have not modeled unemployment directly. In this paper I augment a standard monetary DSGE model with explicit financial and labor market frictions. The financial frictions are modeled as Bernanke, Gertler and Gilchrist...

Economic Fluctuations in a Labor Market with Heterogeneous Agents

Relative Pay and Labor Supply

The authors use a laboratory experiment to examine the impact of relative wages on labor supply. They test the hypothesis that, ceteris paribus, making a given wage high (low) relative to other wage levels will lead to an increase (decrease) in labor supply. They find that labor supply does respond significantly to relative pay, and in the expected direction. However, when a strong enough reaso...

Taxation and Labor Supply Decisions:

Liquidity and Economic Fluctuations∗

This paper studies the relationship between liquidity and economic fluctuations when firms select the number of bonds they issue to finance investment opportunities on which they have private information. The dynamic of bond issuance and security design is the driving force delivering all the main results. First, the analysis provides a theoretical framework in which liquidity, investment and t...