Ljungqvist, Lars; Sargent, Thomas J - C.E.P.R. Discussion Papers - 2015
To generate big responses of unemployment to productivity changes, researchers have reconfigured matching models in … various ways: by elevating the utility of leisure, by making wages sticky, by assuming alternating-offer wage bargaining, by … introducing costly acquisition of credit, or by positing government mandated unemployment compensation and layoff costs. All of …