Financial Market Imperfections, Labour Market Imperfections and Business Cycles
构建了一个理性预期经济周期模型，其中不相关的生产率冲击或货币冲击因金融约束而产生自相关的就业波动，并分析了资本和劳动力市场不完美如何传导冲击。
A Greenwald–Stiglitz (1993a) style rational expectations business cycle model is introduced in which uncorrelated productivity shocks or monetary shocks generate autocorrelated employment fluctuations due to financial constraints. The propagation mechanism is carefully modelled: because of capital market imperfections (only standard debt contracts are traded), firms' labour demand changes in response to changes in their balance‐sheet position; because of labour market imperfections (efficiency wages), employment and unemployment fluctuate in response to shifts in labour demand. The virtue of the model is its simplicity. Despite the fact that unemployment is endogenous, the dynamic behaviour of the model under rational expectations can be characterised analytically.