volatility of income of individual consumers and higher destruction of consumption matches. This lowers profits and further …

Financial frictions are known to raise the volatility of economies to shocks (e.g. Bernanke and Gertler 1989). We … follow this line of research to the labor literature concerned by the volatility of labor market outcomes to productivity … frictions are a good candidate to solve the volatility puzzle and rejoin Pissarides (2009) in arguing that hiring costs must be …

limited role in the growth process. A metamorphosis in these perspectives has taken place in the past two decades. Theory and …

calibrated model leads to a significant reduction in the gap with the data, both in terms of persistence and volatility while …