This paper develops a Walrasian equilibrium theory of establishment level dynamics and matching frictions and uses it … an important role in dampening the response of the economy to aggregate productivity shocks. -- Firm dynamics ; matching …"This paper develops a Walrasian equilibrium theory of establishment level dynamics and matching frictions and uses it …

aggregate productivity shock generates a persistent productivity difference between the two types of matches, creating an … frictions. -- Matching ; productivity shocks ; job flows ; Beveridge curve ; vintage structure ; nominal rigidities ; monetary …This paper focuses on tenure driven productivity dynamics of a firm-worker match as a potential explanation of …