Loading...
The Business Cycle Mechanics of Search and Matching Models
Throckmorton, Nathaniel Bernstein, Joshua Richter, Alexander W.
Throckmorton, Nathaniel
Bernstein, Joshua
Richter, Alexander W.
Abstract
This paper estimates a real business cycle model with unemployment driven by shocks to labor productivity and the job separation rate. We make two contributions. First, we develop a new identification scheme based on the matching elasticity that allows the model to perfectly match a range of labor market moments, including the volatilities of unemployment and vacancies. Second, we use our model to revisit the importance of shocks to the job separation rate and highlight how their correlation with labor productivity affects their transmission mechanism.
Description
Date
2020-08
Journal Title
Journal ISSN
Volume Title
Publisher
Federal Reserve Bank of Dallas
Collections
Download Dataset
Files
Rights Holder
Usage License
Embargo
Research Projects
Organizational Units
Journal Issue
Keywords
Citation
Advisor
Department
DOI
https://doi.org/10.24149/wp2026