Instability and indeterminacy in a simple search and matching model

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

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Year of publication:	2010
Authors:	Krause, Michael U. ; Lubik, Thomas A.
Published in:	Economic Quarterly. - Federal Reserve Bank of Richmond. - 2010, 3Q, v. 96, no. 3, p. 259-272
Publisher:	Federal Reserve Bank of Richmond
Subject:	Labor market \| Business cycles

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Extent:	application/pdf
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010724749