Macroeconomics Reading Group Spring 2006

 

Search and Matching Models of Employment Fluctuations: Recent Developments

 

 

1.  Background: Mehmet, Feb. 1

 

Christopher A. Pissarides. 2000. Equilibrium Unemployment Theory.  MIT Press. Chapters 1-3

 

2. More Background: Mauro, Feb. 8

 

Dale Mortensen and Christopher A. Pissarides, “Job Reallocation and Employment Fluctuations,” in M. Woodford and J.B. Taylor, eds., Handbook of Macroeconomics, vol. 1B, North-Holland, 1999.

Eran Yashiv, “Search and Matching in Macroeconomics,” CEPR discussion paper no. 5459, January 2006.

 

3. The Shimer Critique: Gideon, Feb. 22

 

Robert Shimer, “The Cyclical Behavior of Equilibrium Unemployment and Vacancies,” American Economic Review 95: 25-49 (2005).

Robert E. Hall, “Employment Fluctuations with Equilibrium Wage Stickiness,” American Economic Review 95: 50-65 (2005).

 

4. More on the Critique: Justin, March 1

 

M. Hagedorn and I. Manovskii, “The Cyclical Behavior of Equilibrium Unemployment and Vacancies Revisited,” working paper, U. Pennsylvania, 2005.

Dale T. Mortensen and Eva Nagypal, “More on Unemployment and Vacancy Fluctuations,” NBER working paper no. 11692, October 2005.

 

5. Alternative Models of Wage Bargaining

 

a. Stefania, March 8

 

John Kennan, “Private Information, Wage Bargaining, and Employment Fluctuations,” working paper, U. Wisconsin-Madison, 2005.

 

b. Mike, March 22

 

Guido Menzio, “High-Frequency Wage Rigidity,” working paper, Northwestern University, March 2005.

 

c. Megan, March 29

 

Robert E. Hall and Paul R. Milgrom, “The Limited Influence of Unemployment on the Wage Bargain,” NBER working paper no. 11245, 2005.

Robert E. Hall, “The Labor Market and Macro Volatility: A Non-Stationary General-Equilibrium Analysis,” NBER working paper no. 11684, October 2005.

 

See money/macro seminar series for:

 

Julio J. Rotemberg, “Cyclical Wages in a Search and Bargaining Model with Large Firms,” working paper, Harvard Business School, December 2005.

Mark Gertler and Antonella Trigari, “Unemployment Fluctuations with Staggered Nash Wage Bargaining,” working paper, New York University, November 2005.

 

6. Monetary Models with Search Frictions

 

a. Yuki, April 5

 

Carl E. Walsh, “Labor Market Search, Sticky Prices, and Interest Rate Policies,” Review of Economic Dynamics 8: 829-849 (2005).

 

Also related:

 

"Job destruction and propagation of shocks" den Haan, Ramey, and Watson, AER 2000 June.
 
"Equilibrium unemployment, job flows and inflation dynamics" Trigari, ECB Working Paper, 2004.

 

b. Bruce, April 19

 

Michael Krause and Thomas Lubik. 2005. The (Ir)relevance of Real Wage Rigidity in the New Keynesian Model with Search Frictions. Manuscript.

 

 

7. Competitive Search Models

 

a. Eric, April 26

 

Robert Shimer and Randall Wright, “Competitive Search Equilibrium with Asymmetric Information,” working paper, U. Chicago, August 2004.

 

Veronica Guerrieri, “Efficiency of Competitive Search under Asymmetric Information,” working paper, MIT, November 2005.

 

c. Mauro, May 3

 

Shimer, Robert, and Ivan Werning. 2006. “On the Optimal Timing of Benefits with Heterogeneous Workers and Human Capital Depreciation”. Manuscript, MIT.

 

Also related: 
 
http://home.uchicago.edu/~shimer/wp/reswage-print.pdf
 
http://home.uchicago.edu/~shimer/wp/liquid-insure-print.pdf

 

 

 

 

Further Topics

 

Richard Rogerson, Robert Shimer, and Randall Wright, “Search-Theoretic Models of the Labor Market: A Survey,” working paper, Arizona State University, May 2005.

 

William Hawkins, “Competitive Search, Efficiency and Multi-Worker Firms,” working paper, MIT, November 2005.

 

Manolis Galenianos and Philipp Kircher, “Directed Search with Multiple Job Applications,” working paper, U. Pennsylvania, November 2005.

 

Eva Nagypal, “Amplification of Productivity Shocks: Why Don’t Vacancies Like to Hire the Unemployed,” working paper, Northwestern University, 2005.

 

Eran Yashiv, “Forward-Looking Hiring Behavior and the Dynamics of the Aggregate Labor Market,” working paper, U. Tel Aviv, April 2005.

 

Robert Shimer, “Reassessing the Ins and Outs of Unemployment,” working paper, U. Chicago, June 2005.

 

Robert Shimer, “Mismatch,” NBER working paper no. 11888, December 2005.

 

Last update: 5/1/06