Search and Matching in Macroeconomics

Abstract:     
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.

Number of Pages in PDF File: 73

Keywords: Search, matching, macroeconomics, business cycles, worker flows, growth, policy

JEL Classification: E24, E32, E52, J23, J31, J41, J63, J64, J65

working papers series