Does the Shimer puzzle really exist in the American labour market?

This paper employs a dynamic stochastic general equilibrium (DSGE) method to systematically compare Shimer's and Hagedorn-Manovskii's calibration approaches to the analysis of the Shimer puzzle. The findings indicate that adopting an appropriate calibration strategy may help with solving t...

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Main Author: Furuoka, Fumitaka
Format: Article
Published: Economics Bulletin 2021
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Online Access:http://eprints.um.edu.my/34977/
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Institution: Universiti Malaya
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spelling my.um.eprints.349772022-05-11T01:17:24Z http://eprints.um.edu.my/34977/ Does the Shimer puzzle really exist in the American labour market? Furuoka, Fumitaka HB Economic Theory Business This paper employs a dynamic stochastic general equilibrium (DSGE) method to systematically compare Shimer's and Hagedorn-Manovskii's calibration approaches to the analysis of the Shimer puzzle. The findings indicate that adopting an appropriate calibration strategy may help with solving two aspects of the Shimer puzzle by generating more accurate standard errors for unemployment and elasticity of the v-u ratio with respect to productivity. However, there still remains a tendency to fail to generate an accurate standard deviation for vacancy, which is the unsolvable aspect of the Shimer puzzle. Economics Bulletin 2021 Article PeerReviewed Furuoka, Fumitaka (2021) Does the Shimer puzzle really exist in the American labour market? Economics Bulletin, 41 (3). 1009+. ISSN 1545-2921,
institution Universiti Malaya
building UM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaya
content_source UM Research Repository
url_provider http://eprints.um.edu.my/
topic HB Economic Theory
Business
spellingShingle HB Economic Theory
Business
Furuoka, Fumitaka
Does the Shimer puzzle really exist in the American labour market?
description This paper employs a dynamic stochastic general equilibrium (DSGE) method to systematically compare Shimer's and Hagedorn-Manovskii's calibration approaches to the analysis of the Shimer puzzle. The findings indicate that adopting an appropriate calibration strategy may help with solving two aspects of the Shimer puzzle by generating more accurate standard errors for unemployment and elasticity of the v-u ratio with respect to productivity. However, there still remains a tendency to fail to generate an accurate standard deviation for vacancy, which is the unsolvable aspect of the Shimer puzzle.
format Article
author Furuoka, Fumitaka
author_facet Furuoka, Fumitaka
author_sort Furuoka, Fumitaka
title Does the Shimer puzzle really exist in the American labour market?
title_short Does the Shimer puzzle really exist in the American labour market?
title_full Does the Shimer puzzle really exist in the American labour market?
title_fullStr Does the Shimer puzzle really exist in the American labour market?
title_full_unstemmed Does the Shimer puzzle really exist in the American labour market?
title_sort does the shimer puzzle really exist in the american labour market?
publisher Economics Bulletin
publishDate 2021
url http://eprints.um.edu.my/34977/
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