Esteban-Pretel, Julen; Nakajima, Ryo; Tanaka, Ryuichi - 2011
The search and matching model has recently come under criticism for its inability to account for some of the cyclical properties of the U.S. labor market. Shimer (2005) has shown that the basic version of the model is incapable of reproducing the volatility of the market tightness for reasonable...