Journal Article
Instability and indeterminacy in a simple search and matching model
Abstract: We demonstrate the possibility of indeterminacy and nonexistence of equilibrium dynamics in a standard business cycle model with search and matching frictions in the labor market. Our results arise for empirically plausible parameterizations and do not rely on a mechanism such as increasing returns.
Keywords: Labor market; Business cycles;
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Bibliographic Information
Provider: Federal Reserve Bank of Richmond
Part of Series: Economic Quarterly
Publication Date: 2010
Volume: 96
Issue: 3Q
Pages: 259-272