Description |
1 online resource (55 pages) |
Series |
IMF Working Papers, 1018-5941 ; WP/15/58 |
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IMF working paper ; WP/15/58.
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Contents |
Cover; Contents; 1 Introduction; 2 A Stock-Flow Accounting Model of the Labor Market; 2.1 Specification; 2.1.1 The Labor Force; 2.1.2 Matching Technology; 2.1.3 Vacancies; 2.1.4 Unemployment; 2.2 Steady State; 2.3 Dynamics; 2.4 The Effect of Matching Efficiency ((omitted) and q); 2.5 The Effect of Aggregate Activity (c and d); 2.6 The Effect of Labor Supply ((omitted)); 2.7 Difference from Blanchard and Diamond; 3 Empirical Strategy; 3.1 Empirical Specification; 3.2 Short Run Restrictions; 3.3 Long-Run Restrictions |
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3.3.1 Case 1: Strict Equality, (omitted)L[sub(ss)] = (omitted)U[sub(ss)] -- (omitted)V[sub(ss)]3.3.2 Case 2: Sign Restrictions; 4 Data and Estimation Results; 4.1 The Data; 4.2 Estimation Results; 4.2.1 Reduced-Form Innovations; 4.2.2 Impulse Response Functions and Variance Decomposition; 4.2.3 Historical Decomposition of Unemployment and Vacancies; 4.2.4 The Shift of the Beveridge Curve Since 2004; 5 Conclusion; A Appendix: The Comovement of Job Creation, Job Destruction and Vacancies; A.1 Data Source |
Summary |
The paper utilizes a theoretical stock-flow accounting model of the labor market, similar to Blanchard and Diamond (1989). Identifying restrictions are derived from the theoretical model and are imposed on a SVAR system. The estimation allows for decomposing fluctuations to their cyclical and structural components. The model is applied to the Israeli economy. The estimates suggest that non-cyclical factors account for at least half of the decline of the unemployment rate during the period between 2004-Q1, when unemployment peaked at 10.9 percent, and 2011-Q4, when it marked a trough at 5.4 percent; suggesting a shift inward of the Beveridge curve. --Abstract |
Bibliography |
Includes bibliographical references (pages 53-54) |
Notes |
Print version record |
Subject |
Labor market -- Israel -- Econometric models
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Structural unemployment -- Israel -- Econometric models
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Labor market -- Econometric models
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Structural unemployment -- Econometric models
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Israel
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Form |
Electronic book
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Author |
Presman, Natalya, author
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ISBN |
9781498338110 |
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1498338119 |
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1484360567 |
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9781484360569 |
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