News shocks and labor market dynamics in matching models
We enrich a baseline RBC model with search and matching frictions on the labor market and real frictions that are helpful in accounting for the response of macroeconomic aggregates to shocks. The analysis allows shocks to have an unanticipated and a new (i.e. anticipated) component. The Bayesian e...
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| Format: | Working paper |
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University of Oxford
2015
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