Can the Mortonson-Pissarides matching model match the business cycle facts?

We examine whether the Mortensen-Pissarides matching model can account for the business cycle facts on employment, job creation, and job destruction. A novel feature of our analysis is its emphasis on the reduced-form implications of the matching model. Our main finding is that the model can account for the business cycle facts, but only if the average duration of a nonemployment spell is relatively high—about nine months or longer.

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Year of publication:	1996
Authors:	Cole, Harold L. ; Rogerson, Richard
Institutions:	Federal Reserve Bank of Minneapolis
Subject:	Business cycles

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Extent:	application/pdf
Series:	Staff Report.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 224
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005367620