Search with Wage Posting Under Sticky Prices

Foerster, Andrew T.; Mustre-del-Rio, Jose

doi:10.2139/ssrn.2534565

SSRN Journal

2014

DOI: 10.2139/ssrn.2534565

|View full text |Cite

Search with Wage Posting Under Sticky Prices

Andrew T. Foerster

Jose Mustre-del-Rio

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2018

Publication Types

Select...

Article1

Relationship

Self Cite0

Independent1

Authors

Journals

Cited by 1 publication

(1 citation statement)

References 67 publications

(33 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Recent models in which firms simultaneously decide on vacancy postings and price setting are used in, for example, Sveen and Weinke (), Kuester (), Thomas (), and Foerster and Mustre‐del Rio (). They assume, on the other hand, different structures on wage formation and do not focus on the consequences of trend inflation on labor market volatilities.…”

mentioning

confidence: 99%

Monetary Policy, Trend Inflation, and Unemployment Volatility

Alves¹

2018

J of Money Credit Banking

View full text Add to dashboard Cite

The literature has long agreed that the DMP model (after Diamond 1982, Mortensen 1982, Pissarides 1985 with search and matching frictions in the labor market can deliver large volatilities in labor market quantities, consistent with empirical data, only if there is at least some wage stickiness. I show, however, that the model can deliver nontrivial volatilities without wage stickiness, as long as it has price dispersion and nonzero long-run inflation rates. I find that by keeping inflation at a positive rate, monetary policy may be accountable for the large standard deviations observed on labor market variables. In addition, the Shimer (2005) puzzle disappears under monetary policy shocks.JEL codes: E2, E3, E5, J6

show abstract

mentioning

confidence: 99%

Monetary Policy, Trend Inflation, and Unemployment Volatility

Alves¹

2018

J of Money Credit Banking

View full text Add to dashboard Cite

show abstract

scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.

Contact Info

hi@scite.ai

10624 S. Eastern Ave., Ste. A-614

Henderson, NV 89052, USA

Blog Terms and Conditions API Terms Privacy Policy Contact Cookie Preferences Do Not Sell or Share My Personal Information

Made with 💙 for researchers

Part of the Research Solutions Family.

Search with Wage Posting Under Sticky Prices

Cited by 1 publication

References 67 publications

Monetary Policy, Trend Inflation, and Unemployment Volatility

Monetary Policy, Trend Inflation, and Unemployment Volatility

Contact Info

Product

Resources

About