Research

Publications

Reduced form wage equations in the credible bargaining model, joint with Vincent Boitier (Université du Mans). 2018, Labour Economics.

A simple analytical solution for the wage can be obtained from an alternating-offer bargaining game à la Hall and Milgrom (2008) once a plausible parameter restriction is introduced.

Labor supply factors and economic fluctuations, with Claudia Foroni (Deutsche Bundesbank) and Francesco Furlanetto (Norges Bank). 2018, International Economic Review, forthcoming.

We propose a new VAR identification scheme based on sign restrictions that enables us to disentangle several labor market shocks from standard demand and technology shocks. According to the analysis on US data over the period 1985-2014, labor supply shocks and wage bargaining shocks are important drivers of output and unemployment both in the short run and in the long run. These results suggest that identification strategies used in estimated New Keynesian models to disentangle labor market shocks may be misguided.

A trade-off between average unemployment and inflation volatility arises in a New Keynesian model with search and matching frictions in the labor market. In response to supply shocks, a strong focus on inflation stabilization exacerbates unemployment volatility. Since unemployment fluctuations are asymmetric, it also leads to higher average unemployment. The optimal policy adopts a dual mandate of inflation and employment stabilization. Adopting this policy rather a policy of price stability yields sizeable welfare gains, which are mostly accounted for by the increase in average employment.

The optimal rate of inflation with discount factor heterogeneity, revised September 2017.

The optimal long-run inflation rate is no longer zero in an environment characterized by price stickiness and monopolistic competition once discount factor heterogeneity (between the planner and firms) is introduced. This result is derived analytically in two different frameworks. First, in a standard New Keynesian model in which the heterogeneity in discount factors is imposed exogenously. Second, in a model with a perpetual youth structure in which it arises endogenously.

Work in progress

Wage cyclicality over the business cycle: evidence from France, with Idriss Fontaine (Université de la Réunion) and Clément Malgouyres (IPP).
Ċ
Lepetit Antoine,
19 mars 2018 à 10:44
Ċ
Lepetit Antoine,
24 oct. 2017 à 01:54
Ċ
Lepetit Antoine,
13 sept. 2017 à 09:34
Ċ
Lepetit Antoine,
19 mars 2018 à 10:45
Comments