Does the Shimer puzzle really exist in the American labour market?

Furuoka, Fumitaka (2021) Does the Shimer puzzle really exist in the American labour market? Economics Bulletin, 41 (3). 1009+. ISSN 1545-2921,

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This paper employs a dynamic stochastic general equilibrium (DSGE) method to systematically compare Shimer's and Hagedorn-Manovskii's calibration approaches to the analysis of the Shimer puzzle. The findings indicate that adopting an appropriate calibration strategy may help with solving two aspects of the Shimer puzzle by generating more accurate standard errors for unemployment and elasticity of the v-u ratio with respect to productivity. However, there still remains a tendency to fail to generate an accurate standard deviation for vacancy, which is the unsolvable aspect of the Shimer puzzle.

Item Type: Article
Funders: Tun IsmailAli Chair (TIAC) Research Grant [TIACRG2018.23]
Uncontrolled Keywords: Employment fluctuation; Sequilibrium unemployment; Cyclical behavior; Moral hazard; Model
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HF Commerce > Business
Divisions: Deputy Vice Chancellor (Academic & International) Office > Asia-Europe Institute
Depositing User: Ms Zaharah Ramly
Date Deposited: 11 May 2022 01:17
Last Modified: 11 May 2022 01:17

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