Reciprocity and matching frictions

We build a RBC endogenous separation matching model and introduce efficiency wages along the lines of Akerlof (1982). While the standard endogenous separation matching model reveals shortcomings in explaining correlations and volatilities jointly, this approach performs reasonably well along both dimensions. The proper introduction of real rigidities can consistently enhance the performance of the (endogenous separation) matching model.

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Year of publication:	2010
Authors:	Wesselbaum, Dennis
Publisher:	Kiel : Kiel Institute for the World Economy (IfW)
Subject:	Efficiency Wages \| Endogenous Separations \| Search and Matching

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Series:	Kiel Working Paper ; 1616
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	623833301 [GVK] hdl:10419/30250 [Handle] RePEc:zbw:ifwkwp:1616 [RePEc]
Classification:	E32 - Business Fluctuations; Cycles ; J41 - Contracts: Specific Human Capital, Matching Models, Efficiency Wage Models, and Internal Labor Markets ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	EconStor

Persistent link: https://www.econbiz.de/10010265960