Labor Market Volatility in the RBC Search Model: A Look at Hagedorn and Manovskii’s Calibration
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DOI: 10.1007/s10614-017-9701-9
Abstract: The standard Diamond–Mortensen–Pissarides (DMP) labor search model generates low volatility in labor market variables relative to average labor productivity, the so-called Shimer puzzle. Hagedorn and Manovskii (Am Econ Rev 98(4):1692–1706, 2008) demonstrate that recalibrating the… read more here.
Keywords: search model; labor; search; rbc search ... See more keywords