Essays in Microfoundations of Macroeconomics: Contracts and Macroeconomic Performance

This thesis consists of seven essays that deal with microfunctions of macroeconomics. Two important questions that are addressed in this context are: (i) Do we expect to obtain stylised facts of macroeconomics from microstructures that we observe in labour, financial and product markets (for instance forms of contracts, organisation of wage determination, institutional features)? (ii) Can these microstructures that we observe be explained in a coherent way? Once we answer these questions, we can also reach "efficiency" conclusions and determine certain costs and benefits of different microstructures. This thesis tries to tackle these questions in specific cases. In particular, we investigate these issues in the context of (a) business cycle fluctuations, (b) the persistence and volatility in the time-series relationship behaviour of unemployment and wages, (c) the recent high levels and persistence of long-term unemployment, (d) the time-series relationship between investment and output, (e) the nature and form oflabour, product market and financial contracts.