Eurosclerosis and international business cycles
构建了一个两国动态随机一般均衡模型，引入内生就业创造与破坏的搜索摩擦，解释了1980年代以来欧洲失业率高于美国、且商业周期滞后于美国的现象，发现更慷慨的失业福利和就业保护会推高失业并减缓经济对周期条件的反应。
This paper incorporates search frictions with endogenous job creation and destruction into a two country dynamic stochastic general equilibrium model to explain two macroeconomic facts. First, since the 1980s, European unemployment rates have risen substantially above USA levels. Second, the European business cycle has lagged the USA business cycle during the period of the Great Moderation. In the model, more generous unemployment benefits and greater employment protection (manifested as firing costs) can endogenously generate higher unemployment. These same policies will also create labor market frictions which slow the response of the economy to business cycle conditions.