This paper extends Shimer's (2005) Mismatch model to allow for endogenous mobility. Rather than work directly in the original model, I use a related framework, the stock-flow matching model (Taylor, 1995; Coles and Muthoo, 1998). One of the contributions of this paper is therefore to compare the solutions to these two models. Their predictions are quantitatively similar
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Paper provided by Society for Economic Dynamics in its series 2006 Meeting Papers with number
877.
Length: Date of creation: 03 Dec 2006 Date of revision: Handle: RePEc:red:sed006:877
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