It has been noted that the search and matching model cannot account for the observed unemployment fluctuations. Gertler …

In a multi-country general equilibrium economy with mobile capital and rigid-wage unemployment, countries may differ in … conditions under which - in contrast to free trade with undistorted labor markets - welfare declines and unemployment increases …

downward rigidity, and magnifying the response of unemployment to negative shocks. We also consider layoffs and show that for a …

equilibrium model of wage dynamics and unemployment. The model is developed under the assumption of worker mobility, so that … Beaudry and DiNardo (1991). We solve for the dynamics of wages and unemployment, and show that real wages do not necessarily … to match actual unemployment and wage series. We also show that equal treatment follows in our model from the assumption …

, causing both unemployment and excessive value added in exports. Moreover, excessive wages induce too much outsourcing of …

We introduce search and matching unemployment into a model of trade with differentiated goods and heterogeneous firms …

. Furthermore, they fail to allow for quantity rationing and to model unemployment as a catastrophic event. The macroeconomics based …