A Note on Instability and Indeterminacy in Search and Matching Models

We demonstrate the possibility of indeterminacy and non-existence of equilibrium dynamics in a standard business cycle model with search and matching frictions in the labor market. Our results arise for empirically plausible parametrizations and do not rely upon a mechanism such as increasing returns.

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Year of publication:	2004-11
Authors:	Lubik, Thomas ; Krause, Michael
Institutions:	Department of Economics, Johns Hopkins University

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Extent:	application/pdf
Series:	Economics Working Paper Archive.
Type of publication:	Book / Working Paper
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005435009