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Firm dynamics and random search over the business cycle
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| Authors and Corporations: | |
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| Type of Resource: | E-Book |
| Language: | English |
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| Series: |
Federal Reserve Bank of New York: Staff reports ; no. 1069 (August 2023)
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| Subjects: | |
| Source: | Verbunddaten SWB Lizenzfreie Online-Ressourcen |
| Summary: | I build a tractable random search model with firm dynamics, on-the-job search, and aggregate shocks. Multi-worker firms make recruitment decisions, choose whether to enter or exit the market, and design wage contracts. Tractability is obtained by showing that, under a set of assumptions on the recruitment technology, the decisions of workers and firms can be expressed in terms of the firms' current productivity. I introduce a numerical solution method to accommodate aggregate shocks in this environment and show that the model can replicate salient features of both firm-level data on productivity and employment and aggregate time series describing the business cycle. I use this framework to quantify the drivers of worker reallocation over the recent business cycle in Britain. |
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| Physical Description: | 1 Online-Ressource (circa 84 Seiten); Illustrationen |
| DOI: | 10.59576/sr.1069 |