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  • 标题:Solving the Diamond–Mortensen–Pissarides model accurately
  • 本地全文:下载
  • 作者:Petrosky‐Nadeau, Nicolas ; Zhang, Lu
  • 期刊名称:Quantitative Economics
  • 电子版ISSN:1759-7331
  • 出版年度:2017
  • 卷号:8
  • 期号:2
  • 页码:611-650
  • DOI:10.3982/QE452
  • 语种:English
  • 出版社:John Wiley & Sons, Ltd.
  • 摘要:Abstract

    An accurate global projection algorithm is critical for quantifying the basic moments of the Diamond–Mortensen–Pissarides model. Log linearization understates the mean and volatility of unemployment, but overstates the volatility of labor market tightness and the magnitude of the unemployment–vacancy correlation. Log linearization also understates the impulse responses in unemployment in recessions, but overstates the responses in the market tightness in booms. Finally, the second-order perturbation in logs can induce severe Euler equation errors, which are often much larger than those from log linearization.

  • 关键词:Search frictions ; unemployment ; projection ; perturbation ; nonlinear dynamics ; parameterized expectations ; finite elements ; E24 ; E32 ; J63 ; J64
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