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        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries
        Hysteresis in Unemployment and Jobless Recoveries

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        Hysteresis in Unemployment and Jobless Recoveries

        ABSTRACT

        This paper develops and estimates a general equilibrium rational expectations model with search and multiple equilibria where aggregate shocks have a permanent effect on the unemployment rate. If agents' wealth decreases, the unemployment rate increases for a potentially indefinite period. This makes unemployment rate dynamics path dependent as in Blanchard and Summers (1987). I argue that this feature explains the persistence of the unemployment rate in the U.S. after the Great Recession and over the entire postwar period.

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        • TypeReport
        • PriceFree
        • FormatPDF
        • Size667 KB
        • LanguageEnglish
        • Stacks0
        • Postedalmost 4 years ago
        • Authored-
        • Added byHashdoc Content Review
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