Petrosky-Nadeau, Nicolas; Zhang, Lu - In: Quantitative economics : QE ; journal of the … 8 (2017) 2, pp. 611-650
An accurate global projection algorithm is critical for quantifying the basic moments of the Diamond-Mortensen-Pissarides model. Log linearization under- states the mean and volatility of unemployment, but overstates the volatility of labor market tightness and the magnitude of the...