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Transaction costs are usually thought to be a major source of inefficiency because they do not allow efficient trades to take place. One might think that lowering transaction costs is always welfare-improving. This paper argues that, in contrast to conventional wisdom, it may be beneficial to...
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The matching efficiency of the standard matching function is known to follow a pro-cyclical pattern. An observed … rightward shift in the UK's Beveridge Curve after the Great Recession, suggests a decrease in the matching efficiency between … in efficiency in matching unemployed workers and available vacancies. Accounting for labour market segmentation and …
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