"This article examines the extent to which the Mortensen-Pissarides model of labour market search can quantitatively match business cycle fluctuations in Australia. With productivity and job-separation-rate shocks, the model fails to produce substantial volatility among unemployment or...

type="main" xml:lang="en" <title type="main">Abstract</title> <p>This article surveys some of the contributions of search theory to understanding labour markets. Search theory assumes that trading does not occur in perfectly competitive markets, but rather that frictions exist in the trading process. By making this...</p>