We introduce a joint model of labor market search and firm size dynamics to explain the differential in labor market and productivity outcomes between the U.S. and the European Union. At the core, our model is a hybrid of the labor market search model by Mortensen and Pissarides (1994) and the...

This paper explores labor productivity growth in a Lentz and Mortensen (2005 a,b) model with labor market frictions

A model is developed that employs recent developments in the literature on search models of money to capture the distributional effects of monetary policy in a tractable way. Deterministic and stochastic versions of the model are studied. Money is not neutral, and these non-neutralities persist,...

There is a positive and significant correlation of many traits, such as age, religion, socioeconomic status, and education, among spouses. Becker (1973) shows that positive assortative matching – which results in a perfect correlation of traits in spouses – is optimal if the traits...

This paper investigates how the degree of trading frictions in asset markets affects portfolio allocations, asset prices, efficiency, and several measures of liquidity, such as execution delays, bid-ask spreads, and trade volumes. To this end, we generalize the search-theoretic model of...