Kokonas, Nikolaos and Santos Monteiro, Paulo orcid.org/0000-0002-2014-4824 (2021) Aggregation in Economies with Search Frictions. Journal of Mathematical Economics. 102521. ISSN 0304-4068
Abstract
We derive an aggregation result in economies with indivisible labor supply choices and frictional labor markets, obtaining a tractable model of gross worker flows in aggregate labor markets with search frictions. Our result explores the fact that economies with non-convex choice sets and idiosyncratic shocks allow for sunspot equilibria a la Kehoe et al. (2002). We use comparative steady state analysis to demonstrate the applicability of our aggregation result. Our framework reconciles the neoclassical growth model with search frictions with a mildly procyclical participation rate and matches the gross worker flows underpinning those dynamics.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Elsevier B.V. This is an author-produced version of the published paper. Uploaded in accordance with the publisher’s self-archiving policy. |
Keywords: | indivisibilities,sunspots,search frictions,gross worker flows |
Dates: |
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Institution: | The University of York |
Academic Units: | The University of York > Faculty of Social Sciences (York) > Economics and Related Studies (York) |
Depositing User: | Pure (York) |
Date Deposited: | 21 Apr 2021 15:00 |
Last Modified: | 16 Oct 2024 17:31 |
Published Version: | https://doi.org/10.1016/j.jmateco.2021.102521 |
Status: | Published |
Refereed: | Yes |
Identification Number: | 10.1016/j.jmateco.2021.102521 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:173334 |
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