Pescatori, Andrea; Tasci, Murat - İktisat Bölümü, İktisadi ve İdari Bilimler Fakültesi - 2011
This paper assesses whether labor market frictions, in the form of searching and matching, can help explain movements in the labor wedge—the gap between the marginal rate of substitution (MRS) and the marginal productivity of labor in a perfectly competitive business cycle model. Results...