Bhattacharya, J.; Chankraborty, S. - Tilburg University, Center for Economic Research - 2003
) facilitate quick departures from the Arrow-Debreu world, thereby opening up the role for institutions, (ii) inject some realism … frictions have a multiplier effect on economic activity, by directly a.ecting investment and indirectly through the unemployment … rate.The labor market friction, on the other hand, a.ects unemployment in the short- and long-run but has only a short …