IDEAS home Printed from https://ideas.repec.org/a/cup/macdyn/v23y2019i07p3010-3033_00.html
   My bibliography  Save this article

Expectation Effects Of Regime Shifts On Labor Market Dynamics

Author

Listed:
  • Wang, Tong

Abstract

This paper shows that expectations of possible future regime shifts can contribute to recent deep downturn and stagnant recovery in the US labor market. Apart from the current economic regimes, rational agents consider how regimes will unfold in the future and form their expectations based on the probability of occurrence. Possible regime shifts considered are the stance of monetary policy toward inflation, the degree of real wage rigidity, and the degree of autocorrelation of the shock process. The anticipation of regime shifts alters agents' decision rules and feeds back to labor market dynamics.

Suggested Citation

  • Wang, Tong, 2019. "Expectation Effects Of Regime Shifts On Labor Market Dynamics," Macroeconomic Dynamics, Cambridge University Press, vol. 23(7), pages 3010-3033, October.
    • Handle: RePEc:cup:macdyn:v:23:y:2019:i:07:p:3010-3033_00
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S1365100517001031/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:macdyn:v:23:y:2019:i:07:p:3010-3033_00. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/mdy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.