Research

Publications

Reduced form wage equations in the credible bargaining model, joint with Vincent Boitier. 2016, Labour Economics, forthcoming.

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 and Francesco Furlanetto (Norges Bank). International Economic Review, accepted.

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

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.

Work in progress

Labor supply and the dynamics of unemployment: an estimated DSGE approach, with Francesco Furlanetto (Norges Bank) and Anastasia Zhutova (PSE)


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Lepetit Antoine,
12 avr. 2016 à 08:38
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Lepetit Antoine,
25 mai 2017 à 10:00
Ċ
Lepetit Antoine,
12 avr. 2016 à 08:38
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