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Recessions and expansions are often caused or reinforced by developments in private consumption - the largest component of aggregate demand - which, as a result, varies over the business cycle. As such, an accurate measurement of the cyclical component of consumption and an understanding of its...
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; matching ; business cycle ; goods market imperfection …
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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 shocks initiated by Shimer (2005): in an economy with search...
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the performance of the matching model to generate stylized facts in response to an aggregate productivity shock. However …We implement capital in an endogenous separations New Keynesian matching model. In contrast to the vintage capital …, there is almost no difference for monetary policy shocks. -- Capital ; Endogenous Separations ; Search and Matching …
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