Emerging Market Business Cycles : The Role of Labor Market Frictions.
Emine. Boz
Bok Engelsk 2012 · Electronic books.
| Omfang | 1 online resource (52 pages)
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| Utgave | 1st ed.
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| Opplysninger | Cover -- Contents -- 1 Introduction -- 2 Empirical Evidence on Emerging Economy Labor Markets -- 3 A Small Open Economy Model with Search-Matching Frictions -- 4 Quantitative Analysis -- 4.1 Calibration -- 4.2 Solution: Nonlinear Methods -- 4.3 The Model Dynamics -- 4.4 Main Findings -- Canonical SOE-RBC -- Search-Matching Model -- 4.5 Sensitivity Analysis -- 5 Matching efficiency shocks -- 6 Conclusion -- Tables -- Table 1: Real earnings -- Table 2: Unemployment Rate and Employment -- Table 3: Hours worked: Manufacturing and Aggregate -- Table 4: Calibrated Parameters -- Table 5: Business Cycle Moments -- Table 6: Sensitivity Analysis -- Table 7: Matching Efficiency Shocks -- Figures -- Figure 1: Sectoral Decomposition of Employment -- Figure 2: Limiting Distributions of Endogenous State Variables -- Figure 3: Impulse Response Functions: Main Macroeconomic Variables -- Figure 4: Impulse Response Functions: Labor Market Variables -- Appendixes -- A: Data Appendix -- B: TFP computation -- C: Decentralized Economy -- D: Canonical SOE-RBC -- References -- References.. - Emerging economies are characterized by higher consumption and real wage variability relative to output and a strongly countercyclical current account. A real business cycle model of a small open economy that embeds a Mortensen-Pissarides type of search-matching frictions and countercyclical interest rate shocks can jointly account for these regularities. In the face of countercyclical interest rate shocks, search-matching frictions increase future employment uncertainty, improving workers' incentive to save and generating a greater response of consumption and the current account. Higher consumption response in turn feeds into larger fluctuations in the workers' bargaining power while the interest rates shocks lead to variations in the firms' willingness to hire; both of which contribute to a highly variable real wage.
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| Emner | |
| Sjanger | |
| Dewey | |
| ISBN | 9781475512496
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