Two papers have recently questioned the quantitative consistency of the search and matching models. Shimer (2005) has … argued that a text-book matching model is unable to explain the cyclical variation of unemployment and vacancies in the U …

Incorporating labor market search in general equilibrium models has been shown to generate realistic dynamics in … specifications of the matching technology that can exaggerate the level of unemployment, making possible large employment flows in … into new employment, models with labor market search are still found to generate larger and more persistent propagation of …

shocks. We construct a New Keynesian business cycle model with matching frictions of the labor market, where sluggish …

selling their production and this affects their decisions to create jobs. Due to search-frictins on the product market … their Competitive Search Equilibrium values, the unemployment rate is minimized. Yet, the Competitive Search Equilibrium is …

This paper develops and solves a general equilibrium business cycle model with on-the-job search and wage rigidity … arising from long-term labor contracts. Labor search models without these features have been criticized for failing to … generate procyclical movements in job vacancies and insufficient volatility in the ratio of vacancies to unemployment. When …

I reconcile macro- and micro-evidence on price setting in a search and matching framework. Search frictions lead price … of vacancies in the data. A further interesting finding is that inflation via the Phillips curve is not only driven by an …

This paper studies the cyclical properties the standard Mortensen-Pissarides model of labor search and matching … and vacancies observed in data, as shown in Shimer(2005) using the model without capital …

mechanisms is optimal. We study a real business cycle model with a job matching function which, under non-distortionary full …, and that there is moral hazard in job search behavior. Without insurance, workers save to smooth their consumption. Our …