scholarly journals The (Ir)relevance of Real Wage Rigidity in the New Keynesian Model with Search Frictions

2003 ◽  
Author(s):  
Michael U. Krause ◽  
Thomas A. Lubik
Keyword(s):  
Real Wage ◽  
New Keynesian ◽  
Wage Rigidity ◽  
New Keynesian Model ◽  
Search Frictions ◽  
Keynesian Model ◽  
Real Wage Rigidity

scholarly journals The (ir)relevance of real wage rigidity in the New Keynesian model with search frictions

2007 ◽  
Vol 54 (3) ◽  
pp. 706-727 ◽  
Author(s):  
Michael U. Krause ◽  
Thomas A. Lubik
Keyword(s):  
Real Wage ◽  
New Keynesian ◽  
Wage Rigidity ◽  
New Keynesian Model ◽  
Search Frictions ◽  
Keynesian Model ◽  
Real Wage Rigidity

THE TAYLOR PRINCIPLE AND (IN-) DETERMINACY WITH HIRING FRICTIONS AND SKILL LOSS

2014 ◽  
Vol 19 (5) ◽  
pp. 1045-1073 ◽  
Author(s):  
Ansgar Rannenberg
Keyword(s):  
Real Wage ◽  
Marginal Cost ◽  
Inflation Targeting ◽  
New Keynesian ◽  
Wage Rigidity ◽  
Keynesian Model ◽  
Long Run ◽  
Passive Response ◽  
Feedback Rule ◽  
Real Wage Rigidity

We introduce skill decay during unemployment into a New Keynesian model with hiring frictions and real-wage rigidity. Plausible values of quarterly skill decay and real-wage rigidity turn the long-run marginal cost–unemployment relationship positive in a “European” labor market with little hiring but not in a fluid “American” one. If the marginal cost–unemployment relationship is positive, determinacy requires a passive response to inflation in the central bank's interest feedback rule if the rule features only inflation. Targeting steady-state output or unemployment helps to restore determinacy.

scholarly journals Cyclical Part‐Time Employment in an Estimated New Keynesian Model with Search Frictions

2021 ◽  
Author(s):  
TOSHIHIKO MUKOYAMA ◽  
MOTOTSUGU SHINTANI ◽  
KAZUHIRO TERAMOTO
Keyword(s):  
New Keynesian ◽  
New Keynesian Model ◽  
Search Frictions ◽  
Keynesian Model ◽  
Part Time

scholarly journals Real Wage Rigidities and the New Keynesian Model

2005 ◽  
Author(s):  
Olivier Blanchard ◽  
Jordi Gali
Keyword(s):  
Real Wage ◽  
New Keynesian ◽  
New Keynesian Model ◽  
Keynesian Model

scholarly journals Real Wage Rigidities and the New Keynesian Model

2005 ◽  
Author(s):  
Olivier J. Blanchard ◽  
Jordi Galí
Keyword(s):  
Real Wage ◽  
New Keynesian ◽  
New Keynesian Model ◽  
Keynesian Model

scholarly journals Real Wage Rigidities and the New Keynesian Model

2007 ◽  
Vol 39 ◽  
pp. 35-65 ◽  
Author(s):  
OLIVIER BLANCHARD ◽  
JORDI GALÍ
Keyword(s):  
Real Wage ◽  
New Keynesian ◽  
New Keynesian Model ◽  
Keynesian Model

New Keynesians and Inflation

2020 ◽  
pp. 101-160
Author(s):  
Christopher Tsoukis
Keyword(s):  
Empirical Evidence ◽  
Critical Analysis ◽  
New Keynesian ◽  
Wage Rigidity ◽  
New Keynesian Model ◽  
Stabilization Policy ◽  
Great Moderation ◽  
Menu Costs ◽  
Keynesian Model ◽  
New Directions

This chapter reviews the basic tenets of the New Keynesians (NK); i.e. the school of thought that sought to preserve the insights of Keynes on the desirability of activist stabilization policy, but taking on board the methodological and other advances of the New Classicals. As markets do not clear due to price stickiness, the latter is thoroughly reviewed: causes, including ‘menu costs’, empirical evidence, and implications for price level dynamics are outlined. Other models of wage rigidity as well as new directions of NK theory are also reviewed. Furthermore, the chapter reviews inflation: its costs, causes, and recent ‘great moderation’. It concludes with a critical analysis of the NK model of inflation, and with a review of how this model of inflation can be incorporated into a baseline ‘three-equation New Keynesian model’.

A NOTE ON BUSINESS-CYCLE PROPERTIES IN FRICTIONAL LABOR MARKETS

2018 ◽  
Vol 22 (5) ◽  
pp. 1370-1389
Author(s):  
Chia-Hui Lu
Keyword(s):  
Labor Markets ◽  
New Keynesian ◽  
Wage Rigidity ◽  
Search Model ◽  
Extensive Margin ◽  
Keynesian Model ◽  
Productivity Shock ◽  
Monetary Shock ◽  
Labor Market Dynamics ◽  
Real Wage Rigidity

This paper builds a standard search model with flexible prices and wages, and extensive and intensive labor adjustments. Money is introduced into the model through a cash-in-advance constraint in which only consumption is cash constrained. The model reproduces labor-market dynamics under a productivity shock and/or a monetary shock. I can replicate the Beveridge and Phillips curves that are observed in the data, and do not need to rely on the New Keynesian model or real wage rigidity. I find that the nonexistence of an extensive margin and different money mechanisms, such as cash constraints on investment and money in the utility function, do not change the above replications. Furthermore, I can still replicate the Beveridge curve even without money or with rigid prices.

scholarly journals Endogenous real wage rigidity in a search frictions model

2018 ◽  
Vol 70 (4) ◽  
pp. 1016-1035 ◽  
Author(s):  
Christopher Martin ◽  
Bingsong Wang
Keyword(s):  
Real Wage ◽  
Wage Rigidity ◽  
Search Frictions ◽  
Real Wage Rigidity
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