Tortorice, Daniel L. - In: Journal of Macroeconomics 38 (2013) PB, pp. 179-191
Previous attempts to evaluate the Mortensen–Pissarides model rely on either endogenous separation or wage rigidity. In this paper I simulate a version of the Mortensen–Pissarides (MP) model with wage rigidity and endogenous separation. The model is then able to answer a key question in the...