Krusell, Per; Mukoyama, Toshihiko; Rogerson, Richard; … - C.E.P.R. Discussion Papers - 2009
Commonly used frictional models of the labor market imply that changes in frictions have large effects on steady state employment and unemployment. We use a model that features both frictions and an operative labor supply margin to examine the robustness of this feature to the inclusion of a...