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.

MoreLess

Year of publication:	2004
Authors:	Krause, Michael U. ; Lubik, Thomas A.
Publisher:	Baltimore, MD : The Johns Hopkins University, Department of Economics
Subject:	Suchtheorie \| Arbeitsplatzsuchmodell \| Konjunktur \| Dynamisches Gleichgewicht \| Gleichgewichtsstabilität \| Theorie \| Matching \| Search and matching \| indeterminacy

More details

Series:	Working Paper ; 518
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	472400290 [GVK] hdl:10419/72033 [Handle]
Classification:	E24 - Employment; Unemployment; Wages ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	EconStor

Persistent link: https://www.econbiz.de/10010293499