Arbeitspapier
Financial factors and labour market fluctuations
What are the effects of financial market imperfections on unemployment and vacancies? Since standard DSGE models do not typically model unemployment, they abstract from this issue. In this paper I augment a standard monetary DSGE model with explicit financial and labour market frictions and estimate the model using US data for the period 1964:Q1-2010:Q3. I find that the estimated degree of financial frictions is higher when financial data and shocks are included. The model matches the aggregate volatility in the data reasonably well. In particular, for the labour market, the model is able to generate highly volatile unemployment and vacancies, and a relatively rigid real wage. Further, I find that the financial accelerator mechanism plays an important role in amplifying the effects of financial shocks on unemployment and vacancies. Overall, financial shocks explain about 37 per cent of the fluctuations in unemployment and vacancies.
- Sprache
-
Englisch
- Erschienen in
-
Series: Bank of Canada Working Paper ; No. 2011-12
- Klassifikation
-
Wirtschaft
Business Fluctuations; Cycles
Financial Markets and the Macroeconomy
- Thema
-
Economic models
Financial markets
Labour markets
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Zhang, Yahong
- Ereignis
-
Veröffentlichung
- (wer)
-
Bank of Canada
- (wo)
-
Ottawa
- (wann)
-
2011
- DOI
-
doi:10.34989/swp-2011-12
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Zhang, Yahong
- Bank of Canada
Entstanden
- 2011
Ähnliche Objekte (12)
Financial frictions, financial shocks and labour market fluctuations in Canada
Technology shocks, labour mobility and aggregate fluctuations
Search frictions, financial frictions and labour market fluctuations in emerging markets
Labour Share Fluctuations in Emerging Markets: The Role of the Cost of Borrowing
Unemployment fluctuations in a small open-economy model with segmented labour markets: The case of Canada
Exchange rate fluctuations and labour market adjustments in Canadian manufacturing industries
Exchange rate fluctuations, plant turnover and productivity
Aggregate fluctuations and the role of trade credit
Terms-of-trade and house price fluctuations: A cross-country study
Labour shares and the role of capital and labour market imperfections
Financial development beyond the formal financial market
Supervising financial regulators
Financial frictions, financial shocks and labour market fluctuations in Canada
Technology shocks, labour mobility and aggregate fluctuations
Search frictions, financial frictions and labour market fluctuations in emerging markets
Labour Share Fluctuations in Emerging Markets: The Role of the Cost of Borrowing
Unemployment fluctuations in a small open-economy model with segmented labour markets: The case of Canada
Exchange rate fluctuations and labour market adjustments in Canadian manufacturing industries
Exchange rate fluctuations, plant turnover and productivity
Aggregate fluctuations and the role of trade credit
Terms-of-trade and house price fluctuations: A cross-country study
Labour shares and the role of capital and labour market imperfections
Financial development beyond the formal financial market
Supervising financial regulators
Financial frictions, financial shocks and labour market fluctuations in Canada
Technology shocks, labour mobility and aggregate fluctuations
Search frictions, financial frictions and labour market fluctuations in emerging markets
Labour Share Fluctuations in Emerging Markets: The Role of the Cost of Borrowing
Unemployment fluctuations in a small open-economy model with segmented labour markets: The case of Canada
Exchange rate fluctuations and labour market adjustments in Canadian manufacturing industries
Exchange rate fluctuations, plant turnover and productivity
Aggregate fluctuations and the role of trade credit
Terms-of-trade and house price fluctuations: A cross-country study
Labour shares and the role of capital and labour market imperfections
Financial development beyond the formal financial market