Fujita, Shigeru; Ramey, Garey - In: American Economic Journal: Macroeconomics 4 (2012) 4, pp. 68-93
This paper assesses how various approaches to modeling the separation margin affect the quantitative ability of the Mortensen-Pissarides labor matching model. The model with a constant separation rate fails to produce realistic volatility and productivity responsiveness of the separation rate...