How to solve the Lack of Volatility in the standard MP model

Business & Finance, Economics, Macroeconomics
Cover of the book How to solve the Lack of Volatility in the standard MP model by Kathrin Tiecke, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Kathrin Tiecke ISBN: 9783640800803
Publisher: GRIN Publishing Publication: January 17, 2011
Imprint: GRIN Publishing Language: English
Author: Kathrin Tiecke
ISBN: 9783640800803
Publisher: GRIN Publishing
Publication: January 17, 2011
Imprint: GRIN Publishing
Language: English

Research Paper (undergraduate) from the year 2009 in the subject Economics - Macro-economics, general, grade: 2,3, Humboldt-University of Berlin (Wirtschaftstheorie II (Makro)), course: Arbeitsmarktökonomik, language: English, abstract: The standard search and matching model (D. Mortensen and C.Pissarides,1994; Pissarides, 2000) has been recently challanged by many economists. The Mortensen-Pissarides (1994) model in general says that it takes time to match jobs and workers, which causes unemployment as an outcome of market frictions. The volatility of unemployment fluctuations in the model is not corresponding to the baseline calibration that R. Shimer (2005) has found for the US data. Many authors modified the model in order to solve this lack of volatility. First I introduce the Mortensen-Pissarides model to refer in the second part to the models parameters. Next, I present solutions found by Hall (2005) who solves the model via rigid wage setting and Hagedorn and Manovskii(2005) who provide a small surplus calibration to overcome the lack in volatility of the labor market variables. According to the so called 'Shimer Puzzle' I will present shortly the findings of Gartner, Merkl and Rothe (2009), who calibrate the key labor market variables over the business cycle for the West-German labor market. Further I introduce Morensen and Nagypál (2007) publications on an amneded version of the model and a model with endogenous separations.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Research Paper (undergraduate) from the year 2009 in the subject Economics - Macro-economics, general, grade: 2,3, Humboldt-University of Berlin (Wirtschaftstheorie II (Makro)), course: Arbeitsmarktökonomik, language: English, abstract: The standard search and matching model (D. Mortensen and C.Pissarides,1994; Pissarides, 2000) has been recently challanged by many economists. The Mortensen-Pissarides (1994) model in general says that it takes time to match jobs and workers, which causes unemployment as an outcome of market frictions. The volatility of unemployment fluctuations in the model is not corresponding to the baseline calibration that R. Shimer (2005) has found for the US data. Many authors modified the model in order to solve this lack of volatility. First I introduce the Mortensen-Pissarides model to refer in the second part to the models parameters. Next, I present solutions found by Hall (2005) who solves the model via rigid wage setting and Hagedorn and Manovskii(2005) who provide a small surplus calibration to overcome the lack in volatility of the labor market variables. According to the so called 'Shimer Puzzle' I will present shortly the findings of Gartner, Merkl and Rothe (2009), who calibrate the key labor market variables over the business cycle for the West-German labor market. Further I introduce Morensen and Nagypál (2007) publications on an amneded version of the model and a model with endogenous separations.

More books from GRIN Publishing

Cover of the book The Benefits of Diversity by Kathrin Tiecke
Cover of the book The Role of the Entrepreneurs in Rural Development - New Zealand -Tourism by Kathrin Tiecke
Cover of the book The present and the future of the Ukrainian economy by Kathrin Tiecke
Cover of the book Modern Psychotherapy and Buddhist Thought by Kathrin Tiecke
Cover of the book Virtualization 101 for small business and enterprise by Kathrin Tiecke
Cover of the book Russian Nationalism in the Soviet Union, 1917-1991 by Kathrin Tiecke
Cover of the book To what extent does the quality of input affect the process and ultimate attainment in second language acquisition? by Kathrin Tiecke
Cover of the book The English Language in Quebec by Kathrin Tiecke
Cover of the book Instruktion zum Überleben by Kathrin Tiecke
Cover of the book The Three Gorges Dam (Der Drei Schluchten-Damm) by Kathrin Tiecke
Cover of the book The Credit on Real Estate - Local Value and Relevance for the Construction Financing in Germany and Denmark by Kathrin Tiecke
Cover of the book The Function of Tradition in 'Everyday Use' by Alice Walker and 'Yellow Woman' by Leslie Marmon Silko by Kathrin Tiecke
Cover of the book Internet Protocol Television in Germany - Analysing Business Models for Market Success by Kathrin Tiecke
Cover of the book The influence of religious beliefs on long-term economic development by Kathrin Tiecke
Cover of the book Should UK enter the EMU by Kathrin Tiecke
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy