This very brief note improves the paper by Lisi (2012) by removing from the model an unrealistic feature.

Studies investigating the sign of the relationship between growth and unemployment have generated opposite results. In this paper we provide a simple theoretical model where the net effect of growth on unemployment is ambiguous both in steady state and out-of steady-state.

The recent and growing literature which has extended the use of search and matching models even to the housing market does not use the free entry or zero-profit assumption as a key condition for solving the equilibrium of the model. This is because a straightforward adaptation of the basic...