We consider a two-sided, finite-horizon search and matching model with heterogeneous types and complementarity between … the market. When search is costless and all agents participate in each matching round, the market performs a sorting … function in that high types of agents have multiple chances to match with their peers. However, this sorting function is lost …

-likelihood methods using U.S. data. Estimation results indicate a strong Edgeworth complementarity between private and public spending …

fired because they are not well suited for their job (sorting explanation) or because the firms are trying to provide …

that equilibrium in the sorting economy imposes on the equilibrium price function. The equilibrium price equation …

This paper analyzes the implications of heterogeneity in price setting for both price and inflation inertia. Standard … only ex-post heterogeneity. While it is known that these models have different implications in terms of the dynamic effects … of monetary shocks, the role of heterogeneity has not yet been properly explored. In a simple framework, this paper …

This paper presents a simple Cass-Koopmans-Ramsey AK growth model with heterogeneity that explains how policies that … place in poor and rich countries alike, arising from productivity heterogeneity and redistribution (although it could also … arise from other sources of heterogeneity). The effect is explicitly captured in the aggregate growth equation by the …