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This paper examines the quantitative performance of the standard search and matching model in explaining the cyclical behaviour of Taiwan's labour market. Although the model accounts well for the data in some dimensions, simulated volatility is counterfactually very low, as pointed out in Shimer (2005) for the US labour market. Nevertheless, calibrated to Taiwan's data, the model explains a higher proportion of the observed volatility than the Shimer (2005) results, due to a higher parameter value for leisure; if an extremely high value is assumed, the model explains substantially better, but still partially, the volatility in Taiwan.

This paper conducts quantile regressions and obtains detailed estimates of monetary policy rules in Japan using a sample that includes recent periods of zero interest rates. Taking into account censoring and endogeneity, we compute censored quantile instrumental variable estimators and compare them with estimates from uncensored quantile regressions. The estimation results indicate that not accounting for censoring of interest rates tends to result in downwardly biased estimates. Moreover, our censored quantile regressions lead to relatively flat coefficients of inflation and insignificant coefficients of the output gap over the conditional interest rate distribution, suggesting that monetary policy in Japan may be well described by a linear rule.Keywords Quantile regression · Censoring · Japan · Taylor rule · Zero lower bound JEL Classification C21 · C26 · E52 · E58 B Jau-er Chen

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