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I compare the performance of solution methods in solving a standard real business cycle model with labor market search frictions. Under the conventional calibration, the model is solved by the projection method using the Chebyshev polynomials as its basis, and the perturbation methods up to...
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develops and estimates a DSGE model with search and matching frictions and shocks to unemployment benefits and matching … benefits may have increased the overall unemployment rate by 1 percentage point. In contrast, matching efficiency changes have …
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with search and matching frictions. The size of the public sector has been generally expanding over the last decade …
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