Economics at your fingertips  

The Business Cycle Mechanics of Search and Matching Models

Joshua Bernstein (), Alexander Richter () and Nathaniel Throckmorton

No 2026, Working Papers from Federal Reserve Bank of Dallas

Abstract: This paper estimates a real business cycle model with unemployment driven by shocks to labor productivity and the job separation rate. We make two contributions. First, we develop a new identification scheme based on the matching elasticity that allows the model to perfectly match a range of labor market moments, including the volatilities of unemployment and vacancies. Second, we use our model to revisit the importance of shocks to the job separation rate and highlight how their correlation with labor productivity affects their transmission mechanism.

Keywords: Real Business Cycles; Estimation; Unemployment; Separation Rate; Vacancies (search for similar items in EconPapers)
JEL-codes: C13 E24 E32 E37 J63 (search for similar items in EconPapers)
Pages: 27
Date: 2020-08-25
New Economics Papers: this item is included in nep-dge, nep-lab, nep-mac and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link) Full text (application/pdf)

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:

Ordering information: This working paper can be ordered from

DOI: 10.24149/wp2026

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Dallas Contact information at EDIRC.
Bibliographic data for series maintained by ().

Page updated 2021-09-20
Handle: RePEc:fip:feddwp:88636