New Microfoundations for the Aggregate Matching Function.
Empirical studies of the aggregate labor market matching function have favored a Cobb-Douglas functional form, for which there are no microfoundations in the existing literature. I present a new model for the matching process, based on a "telephone-line" Poisson queuing process, which, unl...
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| Format: | Journal article |
| Language: | English |
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Blackwell Publishing Inc.
2007
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| _version_ | 1797082703045066752 |
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| author | Stevens, M |
| author_facet | Stevens, M |
| author_sort | Stevens, M |
| collection | OXFORD |
| description | Empirical studies of the aggregate labor market matching function have favored a Cobb-Douglas functional form, for which there are no microfoundations in the existing literature. I present a new model for the matching process, based on a "telephone-line" Poisson queuing process, which, unlike other microeconomic approaches, can be integrated directly into standard theoretical search models. This implies a CES matching function, approximately Cobb-Douglas when search costs are approximately linear. The model allows empirical estimates of matching function parameters to be interpreted in terms of the costs and benefits of search. |
| first_indexed | 2024-03-07T01:31:34Z |
| format | Journal article |
| id | oxford-uuid:93c91852-5f6f-49da-a0fc-8ab72f35dbd8 |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T01:31:34Z |
| publishDate | 2007 |
| publisher | Blackwell Publishing Inc. |
| record_format | dspace |
| spelling | oxford-uuid:93c91852-5f6f-49da-a0fc-8ab72f35dbd82022-03-26T23:34:35ZNew Microfoundations for the Aggregate Matching Function.Journal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:93c91852-5f6f-49da-a0fc-8ab72f35dbd8EnglishDepartment of Economics - ePrintsBlackwell Publishing Inc.2007Stevens, MEmpirical studies of the aggregate labor market matching function have favored a Cobb-Douglas functional form, for which there are no microfoundations in the existing literature. I present a new model for the matching process, based on a "telephone-line" Poisson queuing process, which, unlike other microeconomic approaches, can be integrated directly into standard theoretical search models. This implies a CES matching function, approximately Cobb-Douglas when search costs are approximately linear. The model allows empirical estimates of matching function parameters to be interpreted in terms of the costs and benefits of search. |
| spellingShingle | Stevens, M New Microfoundations for the Aggregate Matching Function. |
| title | New Microfoundations for the Aggregate Matching Function. |
| title_full | New Microfoundations for the Aggregate Matching Function. |
| title_fullStr | New Microfoundations for the Aggregate Matching Function. |
| title_full_unstemmed | New Microfoundations for the Aggregate Matching Function. |
| title_short | New Microfoundations for the Aggregate Matching Function. |
| title_sort | new microfoundations for the aggregate matching function |
| work_keys_str_mv | AT stevensm newmicrofoundationsfortheaggregatematchingfunction |