Land collateral and labor market dynamics in France

dc.contributor.authorKaas, Leo
dc.contributor.authorPintus, Patrick A.
dc.contributor.authorRay, Simon
dc.date.accessioned2016-01-27T12:27:21Z
dc.date.available2016-01-27T12:27:21Z
dc.date.issued2016-05
dc.description.abstractThe value of land in the balance sheet of French firms correlates positively with their hiring and investment flows. To explore the relationship between these variables, we develop a macroeconomic model with firms that are subject to both credit and labor market frictions. The value of collateral is driven by the forward-looking dynamics of the land price, which reacts endogenously to fundamental and non-fundamental (sunspot) shocks. We calibrate the model to French data and find that land price shocks give rise to significant amplification and hump-shaped responses of investment, vacancies and unemployment that are in line with the data. We show that both the endogenous movements in the firms׳ discount factor and the sluggish response of the land price are key elements that drive the results.eng
dc.description.versionpublishedeng
dc.identifier.doi10.1016/j.euroecorev.2014.11.002eng
dc.identifier.urihttps://kops.uni-konstanz.de/handle/123456789/32735
dc.language.isoengeng
dc.subjectFinancial shocks; Labor market frictionseng
dc.subject.ddc330eng
dc.subject.jelE24; E32; E44
dc.titleLand collateral and labor market dynamics in Franceeng
dc.typeJOURNAL_ARTICLEeng
dspace.entity.typePublication
kops.citation.bibtex
@article{Kaas2016-05colla-32735,
  year={2016},
  doi={10.1016/j.euroecorev.2014.11.002},
  title={Land collateral and labor market dynamics in France},
  volume={84},
  issn={0014-2921},
  journal={European Economic Review},
  pages={202--218},
  author={Kaas, Leo and Pintus, Patrick A. and Ray, Simon}
}
kops.citation.iso690KAAS, Leo, Patrick A. PINTUS, Simon RAY, 2016. Land collateral and labor market dynamics in France. In: European Economic Review. 2016, 84, pp. 202-218. ISSN 0014-2921. eISSN 1873-572X. Available under: doi: 10.1016/j.euroecorev.2014.11.002deu
kops.citation.iso690KAAS, Leo, Patrick A. PINTUS, Simon RAY, 2016. Land collateral and labor market dynamics in France. In: European Economic Review. 2016, 84, pp. 202-218. ISSN 0014-2921. eISSN 1873-572X. Available under: doi: 10.1016/j.euroecorev.2014.11.002eng
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kops.sourcefieldEuropean Economic Review. 2016, <b>84</b>, pp. 202-218. ISSN 0014-2921. eISSN 1873-572X. Available under: doi: 10.1016/j.euroecorev.2014.11.002deu
kops.sourcefield.plainEuropean Economic Review. 2016, 84, pp. 202-218. ISSN 0014-2921. eISSN 1873-572X. Available under: doi: 10.1016/j.euroecorev.2014.11.002deu
kops.sourcefield.plainEuropean Economic Review. 2016, 84, pp. 202-218. ISSN 0014-2921. eISSN 1873-572X. Available under: doi: 10.1016/j.euroecorev.2014.11.002eng
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source.periodicalTitleEuropean Economic Revieweng

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