The views expressed herein are those of the authors and not necessarily those of the Federal
The European Employment Experience (2007)
Lars Ljungqvist And, Lars Ljungqvist, Thomas J. Sargent
Similar durations but lower flows into unemployment gave Europe lower unemployment rates than the United States until the 1970's. But since 1980, higher durations have kept unemployment rates in...
European Unemployment and Turbulence (2007)
Revisited In Matching, Lars Ljungqvist, Thomas J. Sargent, Christian Haefke
We recalibrate den Haan, Haefke, and Ramey's matching model to capture our preferred specification of `turbulence', modelled in terms of the transition dynamics of human capital after...
Liquidity Premia in Dynamic Bargaining Markets First Version: November 27th 2001 (2003)
Pierre-olivier Weill, Tom Sargent, Many Detailed, O Alvarez, Martine Carré, Ken Judd, ...
This paper develops a search-theoretic model of the cross-sectional distribution of asset returns. It abstracts from risk premia and focuses exclusively on liquidity. A float-adjusted return model...
The European Unemployment Dilemma (1997)
Lars Ljungqvist, Thomas J. Sargent
Introduction During their first decades, European welfare states exhibited unemployment rates equal to or less than those of other market economies; but in the 1980's, they suffered large...
Thesis (Ph. D.)--University of Minnesota, 1988.
Jobs and Unemployment in Macroeconomic Theory: A Turbulence Laboratory
Ljungqvist, Lars, Sargent, Thomas J
We use three general equilibrium frameworks with jobs and unemployed workers to study the effects of government mandated unemployment insurance (UI) and employment protection (EP). To illuminate the...
Money does Granger-cause output in the bivariate output-money relation
Lawrence J. Christiano, Lars Ljungqvist
A bivariate Granger-causality test on money and output finds statistically significant causality when data are measured in log levels, but not when they are measured in first differences of the logs....
The European Unemployment Experience: Theoretical Robustness
Thomas J. Sargent, Lars Ljungqvist
European unemployment
Wage Structure and Public Sector Employment: Sweden versus the United States 1970-1999
Wage inequality, skill premium, public sector, US, Sweden
Wage Structure and Public Sector Employment: Sweden versus the United States 1970-2002
Domeij, David, Ljungqvist, Lars
Swedish census data and tax records reveal an astonishing wage compression; the Swedish skill premium fell by more than 30 percent between 1970 and 1990 while the U.S. skill premium, after an initial...
European Unemployment and Turbulence Revisited in a Matching Model
Lars Ljungqvist, Thomas J. Sargent
We recalibrate den Haan, Haefke, and Ramey's matching model to incorporate our preferred specification of "turbulence" as causing distinct dynamics of human capital after voluntary and involuntary...
Do Taxes Explain European Employment? Indivisible Labour, Human Capital, Lotteries and Savings
Ljungqvist, Lars, Sargent, Thomas J
Adding generous government supplied benefits to Prescott's (2002) model with employment lotteries and private consumption insurance causes employment to implode and prevents the model from matching...
Taxes, Benefits, and Careers: Complete Versus Incomplete Markets
Ljungqvist, Lars, Sargent, Thomas J
An incomplete markets life-cycle model with indivisible labour makes career lengths and human capital accumulation respond to labour tax rates and government supplied non-employment benefits. We...
Tax Policy and Aggregate Demand Management under Catching Up with the Joneses
This paper examines the role for tax policies in productivity-shock driven economies with catching-up-with-the-Joneses utility functions. The optimal tax policy is shown to affect the economy...
Wage Structure and Public Sector Employment: Sweden versus the United States 1970-2002
Domeij, David, Ljungqvist, Lars
Swedish census data and tax records reveal an astonishing wage compression; the Swedish skill premium fell by more than 30 percent between 1970 and 1990 while the U.S. skill premium, after an initial...
How Do Lay--off Costs Affect Employment?
General equilibrium analyses of lay--off costs have had mixed messages on the implications for employment. This paper brings out the economic forces at work and sheds light on the disparate results....
Squandering European Labour: Social Safety Nets in Times of Economic Turbulence.
This paper reviews the argument that high long-term unemployment in Europe is caused by generous social safety nets in times of economic turbulence. We report on the empirical evidence of a more...
Two Questions about European Unemployment
Lars Ljungqvist, Thomas J. Sargent
A general equilibrium search model makes layoff costs affect the aggregate unemployment rate in ways that depend on equilibrium proportions of frictional and structural unemployment that in turn...
How Do Layoff Costs Affect Employment?
General equilibrium analyses of layoff costs have had mixed messages on the implications for employment. This paper brings out the economic forces at work and explains the disparate results....
This paper examines the role for tax policies in productivity-shock driven economies with "catching-up-with-the-Joneses" utility functions. The optimal tax policy is shown to affect the economy...
A supply-side explanation of European unemployment
Lars Ljungqvist, Thomas J. Sargent
This article offers a supply-side explanation of striking patterns in unemployment rates and duration of unemployment in European countries, compared with other member countries of the OECD...
Indivisible Labor and Its Supply Elasticity: Do Taxes Explain European Employment?
Lars Ljungqvist, Thomas J. Sargent
We first scrutinize and challenge Prescott's (2002, 2004) quantitative analysis of the role of differences in taxes in explaining cross-country differences in labor market outcomes, and then defend...
The European Unemployment Dilemma
Ljungqvist, Lars, Sargent, Thomas J.
Post World War II European welfare states experienced several decades of relatively low unemployment, followed by a plague of persistently high unemployment since the 1980s. We impute the higher...
Catching up with the Keynesians
Ljungqvist, Lars, Uhlig, Harald
This paper examines the role for tax policies in productivity-shock driven economies with "catching-up-with -the-Joneses" utility functions. The optimal tax policy is shown to affect the economy...
Squandering European Labor: Social Safety Nets in Times of Economic Turbulence
This paper reviews the argument that high long-term unemployment in Europe is caused by generous social safety nets in times of economic turbulence. We report on the empirical evidence of a more...
How Do Layoff Costs Affect Employment?
General equilibrium analyses of layoff costs have had mixed messages on the implications for employment. This paper brings out the economic forces at work in different frameworks and explains the...
On Consumption Bunching under Campbell-Cochrane Habit Formation
Ljungqvist, Lars, Uhlig, Harald
Campbell and Cochrane (1999) propose a preference specification that can explain a wide variety of asset pricing puzzles such as the high equity premium. They augment the basic power utility function...
The European Unemployment Dilemma
Ljungqvist, Lars, Sargent, Thomas J.
Post World War II European welfare states experienced several decades of relatively low unemployment, followed by a plague of persistently high unemployment since the 1980s. We impute the higher...
Hansen-Janagathan bounds computation
Lars Ljungqvist, Thomas Sargent
These programs allow to compute HJ bounds, sample data is provided.
Matlab code for Hopenhayn-Nicolini's optimal unemployment insurance model
Lars Ljungqvist, Thomas Sargent
hugo.m: the main program which calculates the replacement ratio for unemployment scheme without wage tax. valhugo.m: the function file defining the value function of planner.
Matlab code for the Bewley model with production
Lars Ljungqvist, Thomas Sargent
This series of programs solve a Bewley model with production
How Do Layoff Costs Affect Employment?
General equilibrium analysis of layoff costs have had mixed messages on the implications for employment. This Paper brings out the economic forces at work and explains the disparate results....
The European Employment Experience
Ljungqvist, Lars, Sargent, Thomas J
Similar durations but lower flows into unemployment gave Europe lower unemployment rates than the United States until the 1970's. But since 1980, higher durations have kept unemployment rates in...
European Unemployment and Turbulence Revisited in a Matching Model
Ljungqvist, Lars, Sargent, Thomas J
We recalibrate den Haan, Haefke, and Ramey's matching model to incorporate our preferred specification of 'turbulence' as causing distinct dynamics of human capital after voluntary and involuntary...
Welfare States and Unemployment.
Ljungqvist, Lars, Sargent, Thomas J
This paper studies equilibrium unemployment in a search model where the government both provides liberal unemployment insurance and taxes labor at high progressive tax rates. It is shown how...
Taxes, benefits, and careers: Complete versus incomplete markets
Ljungqvist, Lars, Sargent, Thomas J.
An incomplete-market life-cycle model with indivisible labor makes career lengths and human capital accumulation respond to labor tax rates and government supplied non-employment benefits. We compare...
A supply-side explanation of European unemployment
Lars Ljungqvist, Thomas J. Sargent
This article offers a supply-side explanation of striking patterns in unemployment rates and duration of unemployment in European countries, compared with other member countries of the OECD...
This paper examines the role for tax policies in productivity-shock driven economies with "catching-up-with-the-Joneses" utility functions. The optimal tax policy is shown to affect the economy...
Optimal Endowment Destruction under Campbell-Cochrane Habit Formation
Campbell and Cochrane (1999) formulate a model that successfully explains a wide variety of asset pricing puzzles, by augmenting the standard power utility function with a time-varying subsistence...
Recursive Macroeconomic Theory, 2nd Edition
Lars Ljungqvist, Thomas J. Sargent
Recursive methods offer a powerful approach for characterizing and solving complicated problems in dynamic macroeconomics. Recursive Macroeconomic Theory provides both an introduction to recursive...
European Unemployment: Labour Market Institutions and Economic Turbulence
Arbeitslosigkeit, Arbeitsmarkt, Institutionelle Infrastruktur, Europa, Unemployment, Labour market, Institutional infrastructure, Europe
European Unemployment: Labour Market Institutions and Economic Turbulence
Arbeitslosigkeit, Arbeitsmarkt, Institutionelle Infrastruktur, Europa, Unemployment, Labour market, Institutional infrastructure, Europe
European Unemployment: Labour Market Institutions and Economic Turbulence
Arbeitslosigkeit, Arbeitsmarkt, Institutionelle Infrastruktur, Europa, Unemployment, Labour market, Institutional infrastructure, Europe