I would like to thank Rafael Repullo, Pierre Sarte, Javier Suarez, John Walter, John Weinberg, and seminar participants at CEMFI
for helpful comments.
He is grateful to the Bank of Spain and the Centre de Recerca en Economia Internacional, Universitat Pompeu Fabra, as well as Chris Waller and participants at the Federal Reserve Bank of Saint Louis annual conference, and seminar participants at the Bank of Italy, Rome and CEMFI
, Madrid for helpful comments and suggestions.
This paper is partially based on a research project started while the author was at CEMFI
2000, Discrete Choices with Panel Data, Mimeo, CEMFI
Alejandro Justiniano, Federal Reserve Bank of Chicago, and Claudio Michelacci, CEMFI
, "The Cyclical Behavior of Unemployment and Vacancies in the U.