Labor market search and the dynamic effects of taxes and subsidies

Journal of Monetary Economics

Volumn 43, Issue 2, 1999, Pages 457-495

  Shi, Shouyong ^a   Wen, Quan ^b  

^a QUEEN S UNIVERSITY   (Canada)

^b UNIVERSITY OF WINDSOR   (Canada)

Author keywords

Deadweight loss; E24; E62; H20; Search; Taxes and subsidies; Unemployment

Indexed keywords

EID: 0001331202     PISSN: 03043932     EISSN: None     Source Type: Journal    
DOI: 10.1016/S0304-3932(98)00064-6     Document Type: Article

References (36)

1. Andolfatto D. Business cycles and labor market search. American Economic Review. 86:1996;112-132.
2. Auerbach A.J., Kotlikoff L.J. Dynamic Fiscal Policy. 1987;Cambridge University Press, Cambridge.
3. Blanchard O.J., Diamond P.A. The Beveridge curve. Brookings Papers on Economic Activity. 1:1989;1-60.
4. Burdett K., Kiefer N.M., Mortensen D.T., Neumann G.R. Earnings, unemployment and the allocation of time over time. Review of Economic Studies. 51:1984;559-578.
5. Chamley C. The welfare cost of capital income taxation in a growing economy. Journal of Political Economy. 89:1981;468-496.
6. Chamley C. Optimal taxation of capital income in general equilibrium with infinite lives. Econometrica. 54:1986;607-622.
7. Christiano L.J. Why does inventory investment fluctuate so much? Journal of Monetary Economics. 21:1988;247-280.
8. Coles M., Wright, R., 1994. Dynamic bargaining theory. Journal of Economic Theory, forthcoming.
9. Epstein L. A simple dynamic general equilibrium model. Journal of Economic Theory. 41:1987;68-95.
10. Hansen G. Indivisible labor and the business cycles. Journal of Monetary Economics. 16:1985;309-327.
11. Hansen L.P., Singleton K.J. Stochastic consumption, risk aversion, and the temporal behavior of asset returns. Journal of Political Economy. 91:1983;249-265.
12. Hosios A. On the efficiency of matching and related models of search unemployment. Review of Economic Studies. 57:1990;279-298.
13. Judd K. Short-run analysis of fiscal policy in a simple perfect foresight model. Journal of Political Economy. 93:1985;289-319.
14. Judd K. The welfare cost of factor taxation in a perfect-foresight model. Journal of Political Economy. 95:1987;675-709.
15. Killingsworth M.R. Labor Supply. 1983;Cambridge University Press, Cambridge.
16. King M.A., Fullerton, D., 1984. The Taxation of Income from Capital: A Comparative Study of the United States, the United Kingdom, Sweden, and West Germany, University of Chicago Press, Chicago.
17. Layard, R., Nickell, S., Jackman, R., 1991. Unemployment: Macroeconomic Performance and the Labour Market. Oxford University Press, Oxford.
18. Lucas, R.E. Jr., 1990a. Supply-side economics: An analytical review. Oxford Economic Papers 42, 293-316.
19. Lucas, R.E. Jr., 1990b. Liquidity and interest rates. Journal of Economic Theory 50, 237-264.
20. Merz M. Search in the labor market and the real business cycle. Journal of Monetary Economics. 36:1995;269-300.
21. Millard, S, Mortensen, D.T., 1994. The unemployment and welfare effects of labor market policies: a case for a hiring subsidy. Manuscript, Northwestern University.
22. Mortensen D.T. Property rights and efficiency in mating, racing, and related games. American Economic Review. 72:1982;968-979.
23. Mortensen D.T. Equilibrio de busqueda y ciclos economicos reales (Search equilibrium and real business cycles). Cuadernos Economicos. 51:1992;151-172.
24. Mortensen, D.T., Pissarides, C.A., 1993. The cyclical behavior of job creation and job destruction. In: van Ours, J.C., Pfann, G.A., Ridder, G. (Eds.), Labor Demand and Equilibrium Wage Formation. North-Holland, Amsterdam, pp. 201-222.
25. Peters M. Ex ante price offers in matching games: Non-steady state. Econometrica. 59:1991;1425-1454.
26. Pissarides C.A. Unemployment and vacancies in Britain. Economic Policy. 3:1986;499-559.
27. Pissarides C.A. Equilibrium Unemployment Theory. 1990;Basil Blackwell, Cambridge.
28. Rios-Rull J.V., 1995. Models with heterogeneous agents. In: Cooley, T.F. (Ed.), Frontiers of Business Cycle Research. Princeton University Press, Princeton, New Jersey, pp. 98-125.
29. Rogerson R. Indivisible labor, lotteries and equilibrium. Journal of Monetary Economics. 21:1988;3-16.
30. Rogerson R., Wright R. Involuntary unemployment in economies with efficient risk sharing. Journal of Monetary Economics. 22:1988;501-515.
31. Scheinkman J. On optimal steady states of. n -sector growth models when utility is discounted Journal of Economic Theory. 12:1976;11-30.
32. Shaked A., Sutton J. Involuntary unemployment as a perfect equilibrium in a bargaining model. Econometrica. 52:1984;1351-1365.
33. Shi, S., 1995. Tariffs, unemployment, and the current account: an intertemporal equilibrium model. Manuscript, Queen's University.
34. Shi S., Wen Q. Labor market search and capital accumulation. some analytical results Journal of Economic Dynamics and Control. 21:1997;1747-1776.
35. Topel R., Welch R. Unemployment insurance: survey and extension. Economica. 47:1980;351-379.
36. Wolinsky A. Matching, search, and bargaining. Journal of Economic Theory. 42:1987;311-333.