IDEAS home Printed from https://ideas.repec.org/p/zbw/ifwkie/28697.html
   My bibliography  Save this paper

Monetary and labor policies under market frictions

Author

Listed:
  • Merkl, Christian

Abstract

The thesis analyzes monetary and labor policies under different market frictions. In the first part several versions of a microfounded dynamic general equilibrium model with monopolistic competitors in the product and/or labor market are derived and simulated. First of all, the monetary persistence of a pure price staggering economy is compared to a pure wage staggering economy under different labor market structures (by means of a newly proposed persistence measure) and interactions are explored. Secondly, the thesis simulates the effects of real wage rigidities in a disinflation experiment non-linearly. Thereby, caveats of the conventionally used log-linearization are shown. The second part of the thesis develops a dynamic microfounded labor market framework with insider wage bargaining, labor turnovers costs and tax distortions. The calibrated model is used in order to analyze different labor market policies. The addressed questions include the labor market development in East Germany after unification, the existence of unemployment traps, their influence on labor market persistence and policy effectiveness, and the optimal targeting of employment subsidies in terms of their employment, equity and welfare implications.

Suggested Citation

  • Merkl, Christian, 2007. "Monetary and labor policies under market frictions," Open Access Publications from Kiel Institute for the World Economy 28697, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkie:28697
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/28697/1/52984379X.pdf
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:ifwkie:28697. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/iwkiede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.