We show how frictions and continuous transfers jointly affect equilibria in a model of matching in trading networks …

's matching model of unemployment. To the best of our knowledge, this is the first attempt to implement and systematically compare … these solutions in search-matching economies. Our results are twofold. First from the theoretical and methodological … viewpoint, we extend a somewhat flexible search-matching economy to alternative bargaining solutions. In particular, we prove …

This paper examines whether the Mortensen-Pisssarides matching model with productivity changes can explain the time … seems to be the exogenous matching function and/or the exogenous surplus share, neither of which allows firms to use wage …