the matching model with sunk costs, vacancies react sluggishly to shocks, leading to highly realistic dynamics. … both the vacancy- unemployment ratio and employment. We show that the standard version of the Mortensen-Pissarides matching … model fails to replicate this dynamic pattern due to the rapid responses of vacancies. We extend the model by introducing a …

both the vacancy-unemployment ratio and employment. We show that the standard version of the Mortensen-Pissarides matching … the matching model with sunk costs, new job openings react sluggishly to shocks, leading to highly realistic dynamics …

A matching model with labor/leisure choice and staggered bargaining is used to explain (i)differences in GDP per hour …

This paper introduces risk averse workers into a search and matching model and considers the quantitative performance … search and matching models. … in unemployment and vacancies but also wages, is the drop in consumption for the unemployed. In addition, explaining the …

Shimer (2005) showed that a standard search and matching model of the labor market fails to generate fluctuations of … unemployment and vacancies of the magnitude observed in US data in response to shocks to average labor productivity of plausible … response of unemployment and vacancies to a shock to average labor productivity. In light of these properties, cast in terms of …

I reconcile macro- and micro-evidence on price-setting in a search and matching framework. Negotiation of wages …