Ramey, Garey - Department of Economics, University of California-San … - 2008
This paper assesses how various approaches to modelling the separation margin a¤ect the ability of the Mortensen … separation rate, whether exogenous or endogenous, greatly in- creases the unemployment variability generated by the model. Speciâ …€¦cations with exogenous separation rates, whether constant or time-varying, fail to pro- duce realistic volatility and productivity …