Arnold, Lutz G. (2002) Financial market imperfections, labour market imperfections and business cycles. SCANDINAVIAN JOURNAL OF ECONOMICS, 104 (1). pp. 105-124. ISSN 0347-0520
Full text not available from this repository. (Request a copy)Abstract
A Greenwald-Stiglitz (1993a) style rational expectations business cycle model is introduced in which uncorrelated productivity shocks or monetary shocks generate autocorrelated employment fluctuations due to financial constraints. The propagation mechanism is carefully modelled: because of capital market imperfections (only standard debt contracts are traded), firms' tabour demand changes in response to changes in their balance-sheet positions because of labour market imperfections (efficiency wages), employment and unemployment fluctuate in response to shifts in labour demand, The virtue of the model is its simplicity, Despite the fact that unemployment is endogenous. the dynamic behaviour of the model under rational expectations can be characterised analytically.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | MONETARY-POLICY; AGENCY COSTS; NET WORTH; UNEMPLOYMENT; FLUCTUATIONS; INFORMATION; FIRMS; finance constraints; business fluctuations; unemployment; debt deflation |
| Subjects: | 300 Social sciences > 330 Economics |
| Divisions: | Business, Economics and Information Systems > Institut für Volkswirtschaftslehre und Ökonometrie > Lehrstuhl für Theoretische Volkswirtschaft (Prof. Dr. Lutz Arnold) |
| Depositing User: | Dr. Gernot Deinzer |
| Date Deposited: | 22 Nov 2021 07:18 |
| Last Modified: | 22 Nov 2021 07:18 |
| URI: | https://pred.uni-regensburg.de/id/eprint/40832 |
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