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Endogenous participation in imperfect labor and capital markets

Author

Listed:
  • Spiros Bougheas

    (University of Nottingham)

  • Richard Upward

    (University of Nottingham)

Abstract

We introduce endogenous participation in an economy with labor and financial market frictions. Agents can choose to be workers or entrepreneurs or not to participate in any market. We examine how the transition rates between these three options are affected by productivity shocks (business cycle conditions) and by changes in the level of market frictions (cross-country institutional quality variations).

Suggested Citation

  • Spiros Bougheas & Richard Upward, 2013. "Endogenous participation in imperfect labor and capital markets," Economics Bulletin, AccessEcon, vol. 33(4), pages 2454-2464.
    • Handle: RePEc:ebl:ecbull:eb-13-00102
    as

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    References listed on IDEAS

    as
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    6. Etienne Wasmer & Philippe Weil, 2004. "The Macroeconomics of Credit and Labor Markets Imperfections," Sciences Po Economics Publications (main) hal-01020132, HAL.
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    Keywords

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    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • G3 - Financial Economics - - Corporate Finance and Governance

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