Publication details
Labour Market Modelling within a DSGE Approach
| Authors | |
|---|---|
| Year of publication | 2013 |
| Type | Article in Proceedings |
| Conference | Proceedings of the 31st International Conference Mathematical Methods in Economics |
| MU Faculty or unit | |
| Citation | |
| Web | conference proceedings |
| Field | Economy |
| Keywords | DSGE models; labour market; search and matching; frictions |
| Description | The goal of this paper is to contribute to the understanding of the dynamics of main labour-market variables and their relevance for macroeconomic modelling and forecasting in a period of recession. We consider two ways of incorporating labour market into the New Keynesian DSGE framework. The firs one is rather straightforward and it is based on Jakab and Konya (2009). The second one is more sophisticated and it is based on Christiano et al. (2011). In both cases we extend the DSGE framework with search and matching frictions. Due to the early stage of our research we mainly focus on the literature review in this paper but we also provide some preliminary empirical results. In-sample forecasts generated on calibrated models are employed to evaluate their predictive power. |
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