题目: The Cyclicality of Search Intensity in a Competitive Search Model

Abstract

Reasonably calibrated versions of the Diamond-Mortensen-Pissarides search and matching model of unemployment underpredict, by a wide margin, the volatility of vacancies, unemployment, and the vacancies-unemployment ratio - variables at the heart of this model. These shortcomings motivate the introduction of worker search effort that permits the unemployed to take direct action to affect the outcome of their labor market search. With this modification in place, the benchmark model captures the bulk of the standard deviation of unemployment, vacancies, and the vacancies unemployment ratio.