Welfare-Theoretic Criterion and Labour Market Search

11 Pages Posted: 4 Oct 2005

See all articles by Stephane Moyen

Stephane Moyen

Deutsche Bundesbank - Research Centre

Jean-Guillaume Sahuc

Banque de France; Université Paris Ouest - Nanterre, La Défense - EconomiX

Date Written: September 2005

Abstract

This paper extends the utility-based welfare criterion developed by Woodford (2003) to a model with labour market search. We show how the central banker's concern for inflation stabilization depends on the average steady-state durations of unemployment and job vacancy.

Keywords: Welfare, labour market search, sticky price, second-order approximation techniques

JEL Classification: D60, E24, E52

Suggested Citation

Moyen, Stephane and Sahuc, Jean-Guillaume, Welfare-Theoretic Criterion and Labour Market Search (September 2005). Available at SSRN: https://ssrn.com/abstract=814605 or http://dx.doi.org/10.2139/ssrn.814605

Stephane Moyen

Deutsche Bundesbank - Research Centre ( email )

Wilhelm-Epstein-Str. 14
D-60431 Frankfurt/Main
Germany

Jean-Guillaume Sahuc (Contact Author)

Banque de France ( email )

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France
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Université Paris Ouest - Nanterre, La Défense - EconomiX ( email )

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