EconPapers    
Economics at your fingertips  
 

The Balance Condition in Search‐and‐Matching Models

Stephan Lauermann (), Georg Nöldeke () and Thomas Tröger

Econometrica, 2020, vol. 88, issue 2, 595-618

Abstract: Most of the literature that studies frictional search‐and‐matching models with heterogeneous agents and random search investigates steady state equilibria. Steady state equilibrium requires, in particular, that the flows of agents into and out of the population of unmatched agents balance. We investigate the structure of this balance condition, taking agents' matching behavior as given. Building on the “fundamental matching lemma” for quadratic search technologies in Shimer and Smith (2000), we establish existence, uniqueness, and comparative statics properties of the solution to the balance condition for any search technology satisfying minimal regularity conditions. Implications for the existence and structure of steady state equilibria in the Shimer–Smith model and extensions thereof are noted. These reinforce the point that much of the structure of search‐and‐matching models with quadratic search technologies carries over to more general search technologies.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://doi.org/10.3982/ECTA8356

Related works:
Working Paper: The Balance Condition in Search-and-Matching Models (2019) Downloads
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:wly:emetrp:v:88:y:2020:i:2:p:595-618

Ordering information: This journal article can be ordered from
https://www.economet ... ordering-back-issues

Access Statistics for this article

Econometrica is currently edited by Guido W. Imbens

More articles in Econometrica from Econometric Society Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().

 
Page updated 2020-09-19
Handle: RePEc:wly:emetrp:v:88:y:2020:i:2:p:595-618