Declining Search Frictions, Unemployment, and Growth
研究了在生产和搜索技术改进时，劳动力市场搜索模型是否存在平衡增长路径，发现只有当匹配质量服从帕累托分布时才存在，并衡量了搜索摩擦下降对增长的贡献。
For a search-theoretic model of the labor market, we seek conditions for the existence of a balanced growth path (BGP), where unemployment, vacancy, and worker’s transitions rates remain constant in the face of improvements in the production and search technologies. A BGP exists iff firm-worker matches are inspection goods and the quality of a match is drawn from a Pareto distribution. Declining search frictions contribute to growth with an intensity determined by the tail coefficient of the Pareto distribution. We develop a strategy to measure the rate of decline of search frictions and their contribution to growth.