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Abstract We construct and estimate a business cycle model with search and matching frictions in the labor market and in the product market. We show that the dynamic structure of… Click to show full abstract
Abstract We construct and estimate a business cycle model with search and matching frictions in the labor market and in the product market. We show that the dynamic structure of the model and the endogenous job separation rate are important to accurately represent the empirical responses to the technology and the demand shocks. Our main finding is that the demand shock explains at least 58% of the unemployment fluctuations in the US, while the technology shock accounts for the residual.
Keywords:
demand shocks;
technology;
unemployment fluctuations;
demand;
technology demand
Journal Title: Economic Modelling
Year Published: 2021
Link to full text (if available)
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Journal Title: Economic Modelling
Year Published: 2021
Link to full text (if available)
Share on Social Media: Sign Up to like & get
recommendations!