Researchers at University of Lille Have Published New Data on Macroeconomics
2012 MAY 11 - (VerticalNews.com) -- According to the authors of recent research from Villeneuve d'Ascq, France, "The paper studies the role of labor market frictions in accounting for international business cycle comovement. To this aim, we embed labor market search and matching frictions in a two-country New Keynesian model."
"We show that labor market frictions amplify the international propagation of supply and demand shocks. In terms of cyclical properties then, they raise the cross-country output correlation. Adding labor market search in the New Keynesian model thus improves its ability to account for the business cycle comovement observed in G7 countries in the recent decades. Nominal wage rigidity substantially contributes to this result. Labor market institutions also play a role. Yet, their impact is not unequivocal depending on the institution considered," wrote L. Patureau and colleagues, University of Lille.
The researchers concluded: "Business cycle synchronization is thus found to increase with the generosity of the unemployment benefits system, whereas it decreases with the strictness of employment protection."
Patureau and colleagues published their study in the Journal of Macroeconomics (Labor market frictions and the international propagation mechanism. Journal of Macroeconomics, 2012;34(1):199-222).
For additional information, contact L. Patureau, University of Lille, EQUIPPE, F-59655 Villeneuve Dascq, France.
Publisher contact information for the Journal of Macroeconomics is: Louisiana State Univ Pr, Baton Rouge, La 70893 Usa.
Keywords: City:Villeneuve d'Ascq, Country:France, Region:Europe
This article was prepared by VerticalNews Economics editors from staff and other reports. Copyright 2012, VerticalNews Economics via VerticalNews.com.