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Federal Reserve Bank of Richmond
Instability and indeterminacy in a simple search and matching model
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.
Cite this item
Michael U. Krause & Thomas A. Lubik, "Instability and indeterminacy in a simple search and matching model"
, Federal Reserve Bank of Richmond, Economic Quarterly, issue 3Q, pages 259-272, 2010.
Keywords: Labor market ; Business cycles
This item with handle RePEc:fip:fedreq:y:2010:i:3q:p:259-272:n:v.96no.3
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