Veranstaltungen des DIW Berlin/
Events of DIW Berlin

15 June 2016

DIW Seminar on Macroeconomics and Econometrics Firm dynamics with frictional product and labor markets

We examine empirically and theoretically the joint dynamics of prices, output, employment and wages across firms. We first analyze administrative firm data for the German manufacturing sector for which price and quantity information at the nine-digit product level, together with employment, working hours and wages are available. We then develop a dynamic model of heterogeneous firms who compete for workers and customers in frictional labor and product markets. Prices and wages are dispersed across firms, reflecting differences in firm productivity and demand. Productivity and demand shocks have distinct implications for the firms' employment, output and price adjustments. In a quantitative analysis, we evaluate the model predictions against the data and we apply the model to examine the impact of product market deregulation.

More Information
Speaker
  • Leo Kaas, Universität Konstanz

  • Time
    12:00 - 13:15
    Location
    DIW Berlin (Gustav-Schmoller-Raum) DIW Berlin im Quartier 110 Room 3.3.002A Mohrenstraße 58 10117 Berlin
    Contact(s)
    at DIW Berlin
    Tel.: +49 30 89789 581
    Tel.: +49 30 89789 439