Iliopulos, Eleni; Langot, François; Sopraseuth, Thepthida - Centre d'Économie de la Sorbonne, Université Paris 1 … - 2014
We provide a quantitative assessment of welfare costs of fluctuations in a search model with financial frictions. The matching process in the labor market leads positive shocks to reduce unemployment less than negative shocks increase it. We show that the magnitude of this non-linearity is...