Global Dynamics in a Search and Matching Model of the Labor Market

Nika Lazaryan and Thomas Lubik

No 17-12, Working Paper from Federal Reserve Bank of Richmond

Abstract: We study global and local dynamics of a simple search and matching model of the labor market. We show that the model can be locally indeterminate or have no equilibrium at all, but only for parameterizations that are empirically implausible. In contrast to the local results, we show that the model exhibits chaotic and periodic dynamics for reasonable parameter values both in backward and forward time. 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)
Pages: 38 pages
Date: 2017-10-20
New Economics Papers: this item is included in nep-dge, nep-lab and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.richmondfed.org/-/media/richmondfedorg ... 2017/pdf/wp17-12.pdf 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: https://EconPapers.repec.org/RePEc:fip:fedrwp:17-12

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Paper from Federal Reserve Bank of Richmond Contact information at EDIRC.
Bibliographic data for series maintained by Christian Pascasio ().