The role of labor markets for euro area monetary policy

European Economic Review

Volumn 53, Issue 8, 2009, Pages 908-936

  Christoffel, Kai ^a   Kuester, Keith ^b   Linzert, Tobias ^a  

^a EUROPEAN CENTRAL BANK   (Germany)

^b FEDERAL RESERVE BANK OF PHILADELPHIA   (United States)

Author keywords

Bargaining; Bayesian estimation; Labor market; Wage rigidity

Indexed keywords

BAYESIAN ANALYSIS; BUSINESS CYCLE; INFLATION; KEYNESIAN THEORY; LABOR MARKET; MONETARY POLICY; NUMERICAL MODEL; WAGE;

EID: 70449688245     PISSN: 00142921     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.euroecorev.2009.04.007     Document Type: Article

References (44)

1. Abowd J.M., Corbel P., and Kramarz F. The entry and exit of workers and the growth of employment: an analysis of French establishments. Review of Economics and Statistics 81 2 (1999) 170-187
2. Alvarez L.J., Dhyne E., Hoeberichts M.M., Kwapil C., Bihan H.L., Lünnemann P., Martins F., Sabbatini R., Stahl H., Vermeulen P., and Vilmunen J. Sticky prices in the euro area: a summary of new micro evidence. Journal of the European Economic Association 4 (2006) 575-584
3. Bachmann, R., 2005. Labour market dynamics in Germany: hirings, separations, and job-to-job transitions over the business cycle. SFB Discussion Paper 2005-45, Humboldt University.
4. Bertola G., and Ichino A. Crossing the river: a comparative perspective on Italian employment dynamics. Economic Policy 10 (1995) 359-415
5. Blanchard O. European unemployment: the evolution of facts and ideas. Economic Policy 21 (2005) 5-59
6. Blanchard O., and Portugal P. What hides behind an unemployment rate: comparing Portuguese and U.S. labor markets. American Economic Review 91 1 (2001) 187-207
7. Burda M., and Wyplosz C. Gross worker and job flows in Europe. European Economic Review 38 6 (1994) 1287-1315
8. Cahuc P., and Zylberberg A. Le Chômage: Fatalité ou Nécessité? (2004), Flammarion, Paris
9. Calvo G. Staggered prices in a utility maximizing framework. Journal of Monetary Economics 12 3 (1983) 383-398
10. Christiano L.J., Eichenbaum M., and Evans C. Nominal rigidities and the dynamic effects of a shock to monetary policy. Journal of Political Economy 113 1 (2005) 1-45
11. Christoffel, K., Costain, J., de Walque, G., Kuester, K., Linzert, T., Millard, S., Pierrard, O., 2009. Inflation dynamics with labour market matching: assessing alternative specifications. European Central Bank Working Paper No. 1053.
12. Christoffel K., and Kuester K. Resuscitating the wage channel in models with unemployment fluctuations. Journal of Monetary Economics 55 5 (2008) 865-887
13. Christoffel, K., Linzert, T., 2005. The role of real wage rigidity and labor market frictions for inflation and unemployment dynamics. European Central Bank Working Paper No. 556.
14. Clarida R., Gali J., and Gertler M. Monetary policy rules in practice. Some international evidence. European Economic Review 42 6 (1998) 1033-1067
15. Costain J., and Reiter M. Business cycles, unemployment insurance, and the calibration of matching models. Journal of Economic Dynamics and Control 32 4 (2008) 1120-1155
16. Davis, S.J., Faberman, R.J., Haltiwanger, J., 2006. The flow approach to labor markets: new data sources and micro-macro links. NBER Working Paper No. 12167.
17. den Haan W., Ramey G., and Watson J. Job destruction and propagation of shocks. American Economic Review 90 (2000) 482-498
18. du Caju, P., Gautier, E., Momferatou, D., Ward-Warmedinger, M., 2008. Institutional features of wage bargaining in 22 EU countries, the US and Japan. Mimeo, European Central Bank, Frankfurt am Main.
19. ECB, 2002. Labour market mismatches in the euro area countries. European Central Bank, Frankfurt am Main.
20. Engen E., and Gruber J. Unemployment insurance and precautionary saving. Journal of Monetary Economics 47 3 (2001) 545-579
21. Evers, M., Mooij, R.A.D., Vuuren, D.J.V., 2005. What explains the variation in estimates of labour supply elasticities?. CESifo Working Paper No. 1633, CESifo, Munich.
22. Fahr R., and Sunde U. Disaggregate matching functions. Oxford Economic Papers 56 (2004) 407-436
23. Gertler, M., Sala, L., Trigari, A., 2008. An estimated monetary DSGE model with unemployment and staggered nominal wage bargaining. Journal of Money, Credit, and Banking 40 (8), 1713-1764.
24. Gertler, M., Trigari, A., 2009. Unemployment fluctuations with staggered Nash wage bargaining. Journal of Political Economy 117 (1), 38-68.
25. Hall R.E. Employment fluctuations with equilibrium wage stickiness. American Economic Review 95 1 (2005) 50-65
26. Hobijn, B., Sahin, A., 2007. Job-finding and separation rates in the OECD. Staff Report no. 298, Federal Reserve Bank of New York.
27. Krause M., and Lubik T. The (ir)relevance of real wage rigidity in the New Keynesian model with search frictions. Journal of Monetary Economics 54 3 (2007) 706-727
28. Kuester, K., 2007. Real price and wage rigidities in a model with matching frictions. European Central Working Paper No. 720.
29. Lawless, M., Whelan, K., 2007. Understanding the dynamics of labor shares and inflation. European Central Bank Working Paper No. 784.
30. Mermet E. Wage Formation in Europe (2001), European Trade Union Institute, Brussels
31. Mortensen D., and Nagypal E. More on unemployment and vacancy fluctuations. Review of Economic Dynamics 10 3 (2007) 327-347
32. Mortensen D., and Pissarides C. Job creation and job destruction in the theory of unemployment. Review of Economic Studies 61 3 (1994) 397-415
33. Petrongolo B., and Pissarides C.A. Looking into the black box: a survey of the matching function. Journal of Economic Literature 2001 2 (2001) 390-431
34. Picart, C., 2007. Flux d'emploi et de main-d'oeuvre en France: un réexamen. Document de travail G 2007/05. Institut National de la Statistique et des Études Économique.
35. Schorfheide F. Loss function-based evaluation of DSGE models. Journal of Applied Econometrics 15 6 (2000) 645-670
36. Shimer R. The consequences of rigid wages in search models. Journal of the European Economic Association 2 2 (2004)
37. Smets F., and Wouters R. An estimated stochastic dynamic general equilibrium model of the euro area. Journal of the European Economic Association 1 5 (2003) 1123-1175
38. Smets F., and Wouters R. Comparing shocks and frictions in US and euro area business cycles: a Bayesian DSGE approach. Journal of Applied Econometrics 20 (2005) 161-183
39. Smets F., and Wouters R. Shocks and frictions in US business cycles: a Bayesian DSGE approach. American Economic Review 97 3 (2007) 586-606
40. Stock J., and Watson M. Understanding changes in international business cycles. Journal of the European Economic Association 3 5 (2005) 968-1006
41. Trigari, A., 2006. The role of search frictions and bargaining for inflation dynamics. IGIER Working Paper No. 304.
42. Walsh C. Labor market search, sticky prices, and interest rate policies. Review of Economic Dynamics 8 (2005) 829-849
43. Weber A. Vacancy durations-a model for employer's search. Applied Economics 32 (2000) 1069-1075
44. Zanetti F. A Non-Walrasian Labor Market in a Monetary Model of the Business Cycle. Journal of Economic Dynamics and Control 31 (2007) 2413-2437