Staff research

• Can a Matching Model Explain the Long-Run Increase in Canada's Unemployment Rate?

  Staff Working Paper 1998-19 Andreas Hornstein, Mingwei Yuan

  The authors construct a simple general equilibrium model of unemployment and calibrate it to the Canadian economy. Job creation and destruction are endogenous. In this model, they consider several potential factors that could contribute to the long-run increase in the Canadian unempoloyment rate: a more generous unemployment insurance system, higher layoff costs, higher discretionary taxes, […]

  Content Type(s): Staff research, Staff working papers Topic(s): Economic models, Fiscal policy, Labour markets JEL Code(s): E, E2, E6, J, J4

• The Sale of Durable Goods by a Monopolist in a Stochastic Environment

  Staff Working Paper 1998-18 Gabriel Srour

  This paper examines the sale of durable goods by a monopolist in a stochastic partil equilibrium setting. It analyzes the responses of prices and output to various types of shocks and notes the differences with non-durable goods and competitive markets. It shows that behavior in this model with constant marginal costs of production is in […]

  Content Type(s): Staff research, Staff working papers Topic(s): Market structure and pricing JEL Code(s): D, D4