Neugart, Michael (2004)
Complicated dynamics in a flow model of the labor market.
In: Journal of Economic Behavior & Organization, 53 (2)
doi: 10.1016/S0167-2681(03)00085-4
Article, Bibliographie
This is the latest version of this item.
Abstract
We develop a worker flow model with a nonlinear and endogenous outflow rate from unemployment. Inconsistent claims on the output lead to changing inflation rates which feedback on job offers through the real money supply. Via simulations one can show that the nonlinear outflow rate causes asymmetric adjustment of unemployment to the ‘equilibrium rate of unemployment’. In addition, and depending on the parameters, the ‘equilibrium rate of unemployment’ may also become locally unstable. Then, there is a downward sloping Phillips curve but no trade-off between unemployment and inflation in the short run, as there is none in the long run.
| Item Type: | Article |
|---|---|
| Erschienen: | 2004 |
| Creators: | Neugart, Michael |
| Type of entry: | Bibliographie |
| Title: | Complicated dynamics in a flow model of the labor market |
| Language: | English |
| Date: | 2004 |
| Place of Publication: | Amsterdam |
| Publisher: | Elsevier |
| Journal or Publication Title: | Journal of Economic Behavior & Organization |
| Volume of the journal: | 53 |
| Issue Number: | 2 |
| DOI: | 10.1016/S0167-2681(03)00085-4 |
| URL / URN: | http://www.sciencedirect.com/science/article/pii/S0167268103... |
| Corresponding Links: | |
| Abstract: | We develop a worker flow model with a nonlinear and endogenous outflow rate from unemployment. Inconsistent claims on the output lead to changing inflation rates which feedback on job offers through the real money supply. Via simulations one can show that the nonlinear outflow rate causes asymmetric adjustment of unemployment to the ‘equilibrium rate of unemployment’. In addition, and depending on the parameters, the ‘equilibrium rate of unemployment’ may also become locally unstable. Then, there is a downward sloping Phillips curve but no trade-off between unemployment and inflation in the short run, as there is none in the long run. |
| Uncontrolled Keywords: | Natural rate theory, Nonlinearity, Asymmetric adjustment, Endogenous cycles, Chaos |
| Additional Information: | JEL classification: E24, J64 |
| Divisions: | 01 Department of Law and Economics 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > Fachgebiet Finanzwissenschaft und Wirtschaftspolitik |
| Date Deposited: | 27 Mar 2012 12:46 |
| Last Modified: | 18 Jul 2024 10:16 |
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| Suche nach Titel in: | TUfind oder in Google |
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Complicated dynamics in a flow model of the labor market. (deposited 24 Jun 2024 09:52)
- Complicated dynamics in a flow model of the labor market. (deposited 27 Mar 2012 12:46) [Currently Displayed]
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