Monday, August 29, 2011

Regular and Irregular Economics, Continued

I was pointed to this Richmond Fed article, which relates to Barro and Krugman.


  1. I kinda wished they had included a model but it seems pretty clear that they're thinking through the lens of something like an RBC model+MP search and matching labor market. I've always liked the approach, it gets rid of the "unemployment=taking a vacation" argument against real business cycles.

    Your St. Louis Fed/blogger colleague was one of the first to do it if I recall correctly.

  2. Yes, Andolfatto was well before his time in that respect. Monika Merz did related work at the same time.