Simulating the Diamond-Pissarides-Mortensen model: Search model that gives realistic account of unemployment

Josheski, Dushko and Boskov, Tatjana (2022) Simulating the Diamond-Pissarides-Mortensen model: Search model that gives realistic account of unemployment. International Journal of Economics, Management and Tourism, 1 (1). pp. 29-51. ISSN 2671-3810

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Abstract

This paper is about the conventional search models of unemployment. An as considerable number of authors point out that negatively - sloped Beverage curve is the result of an aggregate demand shock. The shock that creates a positive movement between vacancies and unemployment “loops” around the Beveridge curve is due to matching efficiency and job destruction. This positive co-movement of vacancies and unemployment occurs after recessions. It is why we include RBC model to see the co-movement of IRF function of 6 macro variables including: Labor and wages. New- Keynesian DSGE model was included out of fancy. Unemployment dynamics due to: output, matching efficiency, vacancy advertising cost, unemployment benefits, and exogenous separation rate is studied at the end.

Item Type: Article
Subjects: Social Sciences > Economics and business
Divisions: Faculty of Tourism and Business Logistics
Depositing User: Dusko Josevski
Date Deposited: 18 Feb 2022 12:28
Last Modified: 18 Feb 2022 12:28
URI: https://eprints.ugd.edu.mk/id/eprint/29516

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