Project: Business cycles and market imperfections
RBC and non-clearing markets
Together with Prof. Semmler (New School University and University
Bielefeld) and Prof. Gong (Tsingshua University Beijing) I have
been working on the estimation and calibration of Real Business
Cycle models with non-clearing labour and product markets.
These models allow for an interesting policy analysis of the impact
of employment adjustment cost on business cycle properties, in
particular those related to welfare costs of cycles in general
The work has already fuelled into interesting analysis and policy
recommendations such as in a forthcoming ECB working paper on
"Quantifying the importance of structural reforms" and the new
OECD country survey of the Netherlands (2005).
Various versions of this approach - including one that integrated
estimates for the degree of product market competition - have been
presented at the Boston meeting of the American Economic
Association in January 2006, an OECD workshop in June 2007 and
a meeting at the Turkish Treasury in Ankara in October 2007.
Between 2004 and 2007, I participated in a STREP project funded
by the European Commission on the Varieties of European
In the process of this project, I was coordinating a research group
at the University of Bielefeld, working together with Prof. Willi
Semmler, Alexandra Janovskaia, Uwe Köller and Timo Teuber.
Our contribution to this project was interested in the impact of the
institutional variety in European economies on the properties of
their business cycles and their capacity to absorb exogenous
economic and policy shocks (i.e. their resilience).
In the course of this project, a generalised search and matching
approach was developed that led to the foundation of a
forward-looking Search Phillips Curve, which allows to analyse
more thoroughly the impact of financial and labour market reforms
on the transmission of monetary policy shocks.
In 2007, I initiated and co-organised a Workshop on Structural
Reforms and Economic Resilience at the OECD. The aim of this
workshop was to discuss different approaches to assess the
importance for structural reforms to enhance resilience of OECD
countries to economic shocks.