This paper points out an empirical failing of real business cycle models in which unemployment is endogenized through a matching function. One can easily choose a calibration to make the cyclical fluctuation in unemployment as large in the model as it is in the data, or to make the response of...

The purpose of the article was a space-time analysis of the unemployment rate in polish poviats. In the research we use a model in which spatial dependence is represented in the exponential form, based on the neighborhood matrix. This model, called the Matrix Exponential model, was proposed by...