2024-03-29T13:46:59Z
https://nagoya.repo.nii.ac.jp/oai
oai:nagoya.repo.nii.ac.jp:02001112
2023-01-16T05:13:28Z
1076:1077:1078
General Equilibrium Effects and Labor Market Fluctuations
Kudoh, Noritaka
Miyamoto, Hiroaki
labor market search
stochastic discount factor
unemployment volatility
Business cycle models with search-matching frictions are studied to evaluate the importance of general equilibrium effects generated by movements in the stochastic discount factor and the income effect on labor supply. Without variable hours of work, the general equilibrium effect works only through the stochastic discount factor and is quantitatively very weak. With variable hours of work, the income effect operates to generate procyclical movements in the value of leisure and the marginal hourly wage rate. This effect is sizable and dampens labor market fluctuations. We also study discount factor shocks and find that capital formation strongly enhances labor market fluctuations.
Part of this research is financially supported by KAKENHI (17K03619, 20H01476).
departmental bulletin paper
名古屋大学大学院経済学研究科附属国際経済政策研究センター
Economic Research Center Graduate School of Economics NAGOYA UNIVERSITY
2021-06
application/pdf
Economic Research Center Discussion Paper E-Series
E21-4
1
26
https://nagoya.repo.nii.ac.jp/record/2001112/files/E21-4.pdf
eng