DP5459 Search and Matching in Macroeconomics

Author(s): Eran Yashiv
Publication Date: January 2006
Keyword(s): business cycles, growth, macroeconomics, matching, policy, search, worker flows
JEL(s): E24, E32, E52, J23, J31, J41, J63, J64, J65
Programme Areas: International Macroeconomics, Labour Economics
Link to this Page: www.cepr.org/active/publications/discussion_papers/dp.php?dpno=5459

This paper surveys the use of search and matching models in macroeconomics. It outlines the standard model, discusses its extensions, presents alternative formulations, considers the empirical evidence, and studies applications to macroeconomic questions such as business cycles, growth, and policy. Particular attention is given to the ability of the model to account for labour market dynamics and for cyclical fluctuations in aggregate economic activity