" apply the canonical Diamond-Mortensen-Pissarides model ... to the aggregate data on unemployment and vacancies.... the model and data do not provide a definitive measure of u*. Unemployment insurance benefits have increased since December 2007. Firms expect higher taxes and higher input prices. It is possible that these changes in labor market conditions may have been sufficiently large to generate a big increase in u* in the past three years. "
-num num lakota-
