Skip to Main content Skip to Navigation
Preprints, Working Papers, ...

Financial Shocks, Intangible Capital and the Cyclical Behavior of Unemployment

Abstract : We study the effects of financial shocks on labor markets in a model with both labor and financial frictions, two types of productive capital, physical and intangible, and in which only the former serves as collateral. A tighter borrowing constraint in this environment leads to a fall in credit and investment, skewed in detriment of intangibles, which in its turn lowers the marginal product of labor and reduces the incentives to hire workers. When feeding into the model financial shocks estimated from the data, we find that they explain labor outcomes during the last three downturns in the US, including the sharp increase in unemployment during the great recession.
Document type :
Preprints, Working Papers, ...
Complete list of metadata
Contributor : Antoine Haldemann Connect in order to contact the contributor
Submitted on : Thursday, January 24, 2019 - 8:45:14 PM
Last modification on : Saturday, June 25, 2022 - 10:56:24 AM




  • HAL Id : hal-01993396, version 1




Jose Ignacio Lopez, Virginia Olivella. Financial Shocks, Intangible Capital and the Cyclical Behavior of Unemployment. 2016. ⟨hal-01993396⟩



Record views