Results

Journal article

American Economic Journal: Economic Policy:

A Macroeconomic Approach to Optimal Unemployment Insurance: Applications

Read more...

CEP discussion paper

Preferences for fair prices, cursed inferences, and the nonneutrality of money

This paper explains the nonneutrality of money from two assumptions: (1) consumers dislike paying prices that exceed some fair markup on firms’ marginal costs; and (2) consumers under infer marginal costs from available ...Read more...

CEP discussion paper

A Model of Aggregate Demand and Unemployment

We present a static model of aggregate demand and unemployment. The economy has a nonproduced good, a produced good, and labor. Product and labor markets have matching frictions. A general equilibrium is a set of prices,...Read more...

CentrePiece article

Jobs in a recession

This article is based on a paper that models unemployment as the result of matching frictions and job rationing. Job rationing is a shortage of jobs arising naturally in an economic equilibrium from the combination of so...Read more...

CEP discussion paper

Fiscal Multipliers over the Business Cycle

This paper illustrates why fiscal policy becomes more effective as unemployment rises in recessions. The theory is based on the equilibrium unemployment model of Michaillat (forthcoming), in which jobs are rationed in re...Read more...

CEP discussion paper

Optimal Unemployment Insurance Over the Business Cycle

This paper characterizes optimal unemployment insurance (UI) over the business cycle using a model of equilibrium unemployment in which jobs are rationed in recession. It offers a simple optimal UI formula that can be ap...Read more...

CEP discussion paper

Do Matching Frictions Explain Unemployment? Not in Bad Times

This paper models unemployment as the result of matching frictions and job rationing. Job rationing is a shortage of jobs arising naturally in an economic equilibrium from the combination of some wage rigidity and dimini...Read more...