in the discount factor. A comparison with the standard productivity shock is provided. Movements in the discount factor …In this paper we investigate the labor market dynamics in a matching model where fluctuations are driven by movements … that the canonical matching model under a very standard calibration is able to generate an important volatility of …

The search and matching model of the labor market has become the workhorse for analyzing unemployment dynamics and the … business cycle transmission mechanism. However, many quantitative studies of the search and matching framework argue that it is … and matching framework using Bayesian methods. I show that the model has extremely weak internal propagation and that …

a shock to the efficiency of the matching process (search shock). The two former shocks generate a quite balanced … model capture the possible shifts in the three conditions determining labor market equilibrium in any matching models … shock to the profitability of a match (the aggregate shock), a shock specific to the existing jobs (job-specific shock) and …