Arbeitspapier
Inflation and unemployment in competitive search equilibrium
Using a monetary search model, Rocheteau, Rupert and Wright (2007) show that the relationship between inflation and unemployment can be positive or negative depending on the primitives of the model. The key features are indivisible labor, nonseparable preferences and bargaining. Their results are derived only for a special case of the bargaining solution, take-it-or-leave-it offer by buyers. Instead of bargaining, this paper considers competitive search (price posting with directed search). I show that the results in Rocheteau, Rupert and Wright (2007) can be generalized in an environment where both buyers and sellers have nonseparable preferences. In addition, the relationship between inflation and unemployment is robust to allowing free entry by sellers, which cannot be studied in Rocheteau, Rupert and Wright (2007).
- Language
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Englisch
- Bibliographic citation
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Series: Bank of Canada Working Paper ; No. 2010-15
- Classification
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Wirtschaft
Money and Interest Rates: General
Monetary Policy
General Aggregative Models: Keynes; Keynesian; Post-Keynesian
General Aggregative Models: Neoclassical
- Subject
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Inflation: costs and benefits
Inflationsrate
Arbeitslosigkeit
Arbeitsangebot
Unteilbarkeit
Verhandlungsmacht
Theorie
- Event
-
Geistige Schöpfung
- (who)
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Dong, Mei
- Event
-
Veröffentlichung
- (who)
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Bank of Canada
- (where)
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Ottawa
- (when)
-
2010
- DOI
-
doi:10.34989/swp-2010-15
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Dong, Mei
- Bank of Canada
Time of origin
- 2010
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