TY  - JOUR
AU  - Gomes,Joao
AU  - Greenwood,Jeremy
AU  - Rebelo,Sergio
TI  - Equilibrium Unemployment
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 5922
PY  - 1997
Y2  - February 1997
UR  - http://www.nber.org/papers/w5922
L1  - http://www.nber.org/papers/w5922.pdf
N1  - Author contact info:
Joao Gomes
University of Pennsylvania
Wharton School
Philadelphia, PA  19104
E-Mail: gomesj@wharton.upenn.edu

Jeremy Greenwood
Department of Economics
University of Pennsylvania
3718 Locust Walk
McNeil Building, Rm 160
Philadelphia, PA 19104-6297
Tel: 215/898-1505
Fax: 215/746-2947
E-Mail: do-not-use@jeremygreenwood.net

Sergio Rebelo
Northwestern University
Kellogg School of Management
Department of Finance
Leverone Hall
Evanston, IL  60208-2001
Tel: 847/467-2329
Fax: 847/491-5719
E-Mail: s-rebelo@northwestern.edu
AB  - A search-theoretic general equilibrium model of frictional unemployment is shown to be consistent with some of the key regularities of unemployment over the business cycle.  In the model the return to a job moves stochastically.  Agents can choose either to quit and search for a better job, or continue working.  Search generates job offers that agents can accept or reject.  Two distinguishing features of current work relative to the existing business cycle literature on labor market fluctuations are: (i) the decision to accept or reject jobs is modeled explicitly, and (ii) there is imperfect insurance against unemployment.
ER  -