This chapter assesses how models with search frictions have shaped our understanding of aggregatelabor market outcomes in two contexts: business cycle fluctuations and long-run (trend) changes. Wefirst consolidate data on aggregate labor market outcomes for a large set of OECD countries. We...

Estimates of the marginal product of capital can help forecast economic growth, test competing businesscycle theories, and perform cost-benefit analysis. This paper presents annual and quarterly estimatesof the marginal product of capital in the U.S. separately for the residential and...