Global dynamics in a search and matching model of the labor market

Nika Lazaryan and Thomas A. Lubik ()
Additional contact information
Nika Lazaryan: Federal Reserve Bank of Richmond
Thomas A. Lubik: Federal Reserve Bank of Richmond

Economic Theory, 2019, vol. 68, issue 2, No 8, 497 pages

Abstract: Abstract We study global and local dynamics of a simple search and matching model of the labor market. We show that the model exhibits chaotic and periodic dynamics for empirically plausible parameter values both in backward and forward time. In contrast to the global results, we show that the model can be locally indeterminate or have no equilibrium at all, but only for parameterizations that are empirically unreasonable. In contrast to earlier work, we establish these results analytically without placing numerical restrictions on the parameters.

Keywords: Indeterminacy; Bifurcation; Chaos; Backward map; Forward map (search for similar items in EconPapers)
JEL-codes: C62 C65 E24 J64 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://link.springer.com/10.1007/s00199-018-1131-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:joecth:v:68:y:2019:i:2:d:10.1007_s00199-018-1131-y

Ordering information: This journal article can be ordered from
http://www.springer. ... eory/journal/199/PS2

DOI: 10.1007/s00199-018-1131-y

Access Statistics for this article

Economic Theory is currently edited by Nichoals Yanneils

More articles in Economic Theory from Springer, Society for the Advancement of Economic Theory (SAET) Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().