Publication Type
PhD Dissertation
Version
publishedVersion
Publication Date
9-2017
Abstract
A major perspective in explaining involuntary unemployment is to recognize the existence of job market frictions, in particular, job market matching frictions. The workhorse model employed is the Diamond- Mortensen-Pissarides (DMP) model. Similar to the labor market, the market for physical capital markets exhibits the same characteristics with a pool of unsold inventory as well as used capital that is sold and reallocated to other terms. Nevertheless, past research has highlighted several issues of the DMP model in matching the characteristics of the labor market. In a model enriched with labor participation flows and job separation, I evaluate the model performance in resolving the issues in the Krause and Lubik (2007) model in the presence of nominal price rigidity. The model resolves the failure in generating the Beveridge curve in the presence of endogenous job destruction. Separately, in a RBC model with frictional labor and physical capital market and endogenous labor participation, I evaluate the model prediction in a context where labor disutility is procyclical under both contemporaneous shocks and news shocks.
Keywords
labor market, search
Degree Awarded
PhD in Economics
Discipline
Behavioral Economics | Economics | Work, Economy and Organizations
Supervisor(s)
HOON, Hian Teck
Publisher
Singapore Management University
City or Country
Singapore
Citation
MOK, Weng Sam.
Evaluating the empirical performance of DSGE models: What is the role of search and matching frictions in the labor and capital markets?. (2017).
Available at: https://ink.library.smu.edu.sg/etd_coll_all/40
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.