Projects per year
Abstract
I study the effect of the market arrangement on competitive allocations in a model in which the distribution of idiosyncratic uncertainty is determined endogenously. The particular application I consider is a search model of the labor market embedded in a general equilibrium model with production and asset accumulation. It is shown that costly search with incomplete markets introduces a wealth effect at low levels of wealth such that poor agents do not search much or even find optimal not to look for a job. The combination of this effect with the usual one at higher wealth levels delivers equilibrium allocations that are remarkably different from the one that obtains under complete markets. I also use numerical methods to obtain quantitative predictions in a calibrated version of the model. The effect of the market arrangement remains dramatically large due to search externalities.
Original language | English |
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Number of pages | 69 |
Publication status | Published - 1 Jan 2012 |
Publication series
Name | BGSE |
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No. | 670 |
Keywords
- Search
- Incomplete markets
- General equilibrium
Fingerprint
Dive into the research topics of 'Search and matching in the labor market without unemployment insurance'. Together they form a unique fingerprint.Projects
- 2 Finished
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Análisis macroeconómico del mercado de trabajo
Caballé, J., Gambetti , L., Fernandez Blanco, J., Fiedler , A., Gierlinger , J., Obiols, F., Panadès Martí, J., Sorolla Amat, V., Gierlinger, J. & Fernandez Blanco, J.
1/01/16 → 30/06/19
Project: Research Projects and Other Grants
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LAS FLUCTUACIONES EN EL MERCADO DE TRABAJO Y LOS EFECTOS DE LA POLITICA MACROECONOMICA
Caballé, J., Choi , S., Gambetti , L., Gierlinger , J., Conesa Roca, J. C., Gnocchi , S., Obiols, F., Panadès Martí, J., Pappa , E. & Sorolla Amat, V.
Ministry of Economy and Competitiveness (MINECO)
1/01/13 → 31/12/15
Project: Research Projects and Other Grants