Welfare-Theoretic Criterion and Labour Market Search
Banque de France - Centre de Recherche
This paper extends the utility-based welfare criterion developed by Woodford (2003) to a model with labour market search. We show how the central banker's concern for inflation stabilization depends on the average steady-state durations of unemployment and job vacancy.
Number of Pages in PDF File: 11
Keywords: Welfare, labour market search, sticky price, second-order approximation techniques
JEL Classification: D60, E24, E52working papers series
Date posted: October 4, 2005
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