This paper studies a labor market with directed search, where multi-worker firms follow a firm wage policy: They pay equally productive workers the same. The policy reduces wages, due to the influence of firms’ existing workers on their wage setting problem, increasing the profitability...

Intangible capital is an important factor of production in modern economies that is generally neglected in business cycle analyses. We demonstrate that intangible capital can have a substantial impact on business cycle dynamics, especially if the intangible is complementary with production...

This paper presents a new approach to modelling credit restrictions by considering uncertain access to the asset market.The asset market and the stochastic process governing access are considered fully exogenous and independent of income.The model generates stable debt trajectories for a broader...

bound on how far they can go in explaining unemployment cyclicality.

We model a labor market with search and matching frictions where some or all workers belong to a (centralized) union, both in the case where coverage is exogenously given and where it is endogenous. Unions are assumed to choose identical wages for all unionized workers, and firms are assumed not...

Firms spend substantial resources on creating and maintaining customer relationships. We explore the role of this customer capital for firm level and aggregate dynamics. Building on the neoclassical adjustment cost model of investment, we propose a tractable search theoretic general equilibrium...

House prices fall as the time on the market passes. We document this negative duration dependence for the US housing market using house-level data on listed prices. We interpret the pattern as a result of sellers' imperfect information about the "appeal" of houses to potential buyers. When...

Intangible capital is an important factor of production in modern economies that is generally neglected in business cycle analyses. We demonstrate that intangible capital can have a substantial impact on business cycle dynamics, especially if the intangible is complementary with production...

Intangible capital is an important factor of production in modern economies that is generally neglected in business cycle analyses. We demonstrate that intangible capital can have a substantial impact on business cycle dynamics, especially if the intangible is complementary with production...