[New post] Sentences about unemployment

Tyler Cowen posted: "As in the data, the price of risk in our model sharply increases in recessions. The benefit from hiring new workers therefore greatly declines, leading to a large decrease in job vacancies and an increase in unemployment of the same magnitude as in the da" New post on Marginal REVOLUTION Sentences about unemployment by Tyler Cowen As in the data, the price of risk in our model sharply increases in recessions. The benefit from hiring new workers therefore greatly declines, leading to a large decrease in job vacancies and an increase in unemployment of the same magnitude as in the data. Yes, nominal wages are sticky but this is the other and all-important side of the hiring equation. That is from a new and important NBER working paper by Patrick J. Kehoe, Pierlauro Lopez, Virgiliu Midrigan, and Elena Pastorino.  There is much more to their general model than that single sentence would indicate. Tyler Cowen | March 3, 2022 at 3:06 am | Categories: Economics, Uncategorized | URL: https://wp.me/p2T8CM-lBY Comment    See all comments Unsubscribe to no longer receive posts from Marginal REVOLUTION. Change your email settings at Manage Subscriptions. Trouble clicking? Copy and paste this URL into your browser: https://marginalrevolution.com/marginalrevolution/2022/03/sentences-about-unemployment.html