We implement capital in an endogenous separations New Keynesian matching model. In contrast to the vintage capital … the performance of the matching model to generate stylized facts in response to an aggregate productivity shock. However …, there is almost no difference for monetary policy shocks. -- Capital ; Endogenous Separations ; Search and Matching …

along those dimensions. Skill mismatch arises due to information and labor market frictions. Estimated to the U.S., the …