Collateral Constraints, Wage Rigidity, and Jobless Recoveries

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Tobias Föll
Keyword(s):  
Wage Rigidity ◽  
Jobless Recoveries ◽  
Collateral Constraints ◽  
Collateral Constraint ◽  
The Great Recession ◽  
Matching Frictions ◽  
Search And Matching Frictions ◽  
Business Cycle Model ◽  
The Cost

Abstract The Great Recession has drawn attention to the importance of macro-financial linkages. In this paper I explore the joint role of imperfections in labor and financial markets for the cyclical adjustment of the labor market. I show that jobless recoveries emerge when, upon exiting a recession, firms are faced with deteriorating credit conditions. On the financial side, collateral requirements affect the cost of borrowing for firms. On the employment side, hiring frictions and wage rigidity increase the need for credit, making the binding collateral constraint more relevant. In a general equilibrium business cycle model with search and matching frictions, I illustrate that tightening credit conditions calibrated from data negatively affect employment adjustments during recovery periods. Wage rigidity substantially amplifies this mechanism, generating empirically plausible fluctuations in employment and output.

scholarly journals A NOTE ON LEARNING IN A CREDIT ECONOMY

2014 ◽  
Vol 20 (3) ◽  
pp. 845-855 ◽  
Author(s):  
Pei Kuang
Keyword(s):  
Stability Condition ◽  
Economic Activity ◽  
Learning Behavior ◽  
Aggregate Fluctuations ◽  
Economic Agents ◽  
Collateral Constraints ◽  
Collateral Constraint ◽  
Imperfect Knowledge ◽  
The Business Cycle

This paper introduces imperfect knowledge and learning behavior of economic agents into the Kiyotaki and Moore model and studies the interaction of agents' collateral price beliefs, collateral constraint, and aggregate economic activity over the business cycle. It establishes the E-stability condition and the convergence of the real time learning process. In addition, it shows that learning strengthens the role of collateral constraints in aggregate fluctuations.

scholarly journals THE INTENSIVE MARGIN PUZZLE AND LABOR MARKET ADJUSTMENT COSTS

2015 ◽  
Vol 20 (6) ◽  
pp. 1458-1476
Author(s):  
Dennis Wesselbaum
Keyword(s):  
Labor Market ◽  
Adjustment Costs ◽  
Employment Protection ◽  
Intensive Margin ◽  
Firing Costs ◽  
Extensive And Intensive Margins ◽  
Matching Frictions ◽  
Search And Matching Frictions ◽  
Protection Legislation ◽  
Business Cycle Model

This paper documents a puzzling fact, namely that there is a significant negative relation between employment protection legislation and the usage of the intensive margin of labor market adjustments. I make use of a real business cycle model and introduce search and matching frictions as well as adjustment costs along the extensive and the intensive labor market margins. I show that the model is able to replicate the observed patterns of cyclicality, volatility, and especially the behavior of extensive and intensive margins if we assume low firing costs and relatively high hours adjustment costs.

A LOOK AT THE U.S. BUSINESS CYCLES THROUGH THE LENS OF A TANK MODEL

2020 ◽  
pp. 1-19
Author(s):  
Yongseung Jung
Keyword(s):  
Great Recession ◽  
New Keynesian ◽  
Tank Model ◽  
The Great Recession ◽  
Keynesian Model ◽  
Monetary Policy Shock ◽  
Post War ◽  
The 1960S ◽  
The Cost

This paper sets up a two-agent new Keynesian model to explore the role of financial frictions over the post-war U.S. business cycle. The estimated model via maximum likelihood shows that the share of constrained households which has been substantial since the 1960s has significantly increased during the Great Recession. It also finds that the cost-push shock has been most important in explaining the behavior of the detrended output. The cost-push shock has also played a pivotal role in the fluctuation of inflation during the Great Recession, while the monetary policy shock which has been important in the behavior of inflation before the financial crisis has a negligible role during the Great Recession.

Hostile Takeovers and Anti-takeover Defenses in the Russian Corporate Market

2007 ◽  
pp. 70-84 ◽  
Author(s):  
E. Demidova
Keyword(s):  
Cost Benefit Analysis ◽  
Cost Benefit ◽  
Benefit Analysis ◽  
Costs And Benefits ◽  
Hostile Takeovers ◽  
Russian Market ◽  
Takeover Defenses ◽  
The Cost ◽  
European Markets

This article analyzes definitions and the role of hostile takeovers at the Russian and European markets for corporate control. It develops the methodology of assessing the efficiency of anti-takeover defenses adapted to the conditions of the Russian market. The paper uses the cost-benefit analysis, where the costs and benefits of the pre-bid and post-bid defenses are compared.

Changing Role of Agriculture in Income and Employment, and Trends of Agricultural Worker Productivity in Indian States

2020 ◽  
pp. 183-189
Keyword(s):  
Green Revolution ◽  
Positive Trend ◽  
Worker Productivity ◽  
Indian States ◽  
Agricultural Worker ◽  
The Sixties ◽  
High Level ◽  
The Cost ◽  
Changing Role

The productivity of land has been often discussed and deliberated by the academia and policymakers to understand agriculture, however, very few studies have focused on the agriculture worker productivity to analyze this sector. This study concentrates on the productivity of agricultural workers from across the states taking two-time points into consideration. The agriculture worker productivity needs to be dealt with seriously and on a time series basis so that the marginal productivity of worker can be ascertained but also the dependency of worker on agriculture gets revealed. There is still disguised unemployment in all the states and high level of labour migration, yet most of the states showed the dependency has gone down. Although a state like Madhya Pradesh is doing very well in terms of income earned but that is at the cost of increased worker power in agriculture as a result of which, the productivity of worker has gone down. States like Mizoram, Meghalaya, Nagaland and Tripura, though small in size showed remarkable growth in productivity and all these states showed a positive trend in terms of worker shifting away from agriculture. The traditional states which gained the most from Green Revolution of the sixties are performing decently well, but they need to have the next major policy push so that they move to the next orbit of growth.

Music publications in Galicia in the 19th — beginning of the 20th centuries: production, advertising, pricing

2019 ◽  
pp. 481-499
Author(s):  
Olga Osadtsia
Keyword(s):  
Book Publishing ◽  
Initial Form ◽  
Music Production ◽  
Bibliographic Information ◽  
Financial Factor ◽  
Determining Factors ◽  
Book Selling ◽  
The Cost ◽  
Import Trade

The main forms and methods of distribution of music publications in Galicia in the XIX — early XX centuries are scrutinized. The demand for the relevant music production is one of the determining factors in the formation of the musical publishing repertoire, its structure and special features in the process of the existence of music publications in society. It is noted that export-import trade in books has become especially widespread in Galicia; there are facts about the links between publishers and booksellers in Lviv and Warsaw. The basic types of presentation of book advertising of music products, its regional peculiarities, and ways of its placement are considered. Special emphasis is placed on the role of specialized press in the advertising of music products, typical examples of press advertising. The registration bibliographic information as the initial form of music bibliography and the forms of its compilation are distinguished. The emphasis is placed on the importance of thorough critical articles as a separate typological group of bibliographic publications under the conditions of formation of the Ukrainian bibliography, in which the main importance is given to the disclosure of the content and evaluation of the reviewed work. The combination of article genres and reviews on examples of separate publications by Stanislav Lyudkevych and Ivan Franko is traced. Special book-selling and book-publishing catalogs are characterized. While executing the marketing and advertising function, these directories were addressed primarily to foreign consumers and distributors (the so-called commissioners).One way to distribute music is to subscribe through libraries. A significant financial factor in the distribution of any printed matter was the price that depended primarily on the cost of each process associated with its publication. Keywords: music publications, bookstore, book-trading enterprise, advertising of publications, pricing.

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