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Staggered Wages, Sticky Prices, and Labor Market Dynamics in Matching Models

Staggered Wages, Sticky Prices, and Labor Market Dynamics in Matching Models

Year:    2014

Author:    Neugebauer, Janett, Wesselbaum, Dennis

Applied Economics Quarterly, Vol. 60 (2014), Iss. 3 : pp. 159–177

Abstract

This paper estimates a search and matching model using Bayesian methods. We deviate from the existing literature in two ways. First, we provide a cross-country analysis by estimating the model for the United States and Australia. We document differences in structural parameters and key driving forces of business cycle fluctuations. Second, we find that staggered wages rather than sticky prices matter to fit the data.

JEL Codes: C11, E24, J6.

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Journal Article Details

Publisher Name:    Global Science Press

Language:    English

DOI:    https://doi.org/10.3790/aeq.60.3.159

Applied Economics Quarterly, Vol. 60 (2014), Iss. 3 : pp. 159–177

Published online:    2014-09

AMS Subject Headings:    Duncker & Humblot

Copyright:    COPYRIGHT: © Global Science Press

Pages:    19

Author Details

Neugebauer, Janett

Wesselbaum, Dennis