TY  - JOUR
A1  - Kaas, Leo
A1  - Kimasa, Bihemo
T1  - Firm dynamics with frictional product and labor markets
T2  - International economic review
N2  - We analyze the joint dynamics of prices, productivity, and employment across firms, building a dynamic equilibrium model of heterogeneous firms who compete for workers and customers in frictional labor and product markets. Using panel data on prices and output for German manufacturing firms, the model is calibrated to evaluate the quantitative contributions of productivity and demand for the labor market. Product market frictions decisively dampen the firms' employment adjustments to productivity shocks. We further analyze the impact of aggregate shocks to the first and second moments of productivity and demand and relate them to business-cycle features in our data.
Y1  - 2021
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/61549
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-615499
SN  - 1468-2354
VL  - 2021
IS  - Online Version of Record before inclusion in an issue
SP  - 1
EP  - 37
PB  - Wiley-Blackwell
CY  - Malden, Mass.
ER  -