Discover how search theory illuminates market frictions, affecting employment, pricing, and transactions. Learn its applications across different economic contexts.

At a time of high unemployment in many parts of the world amid a global economic downturn, the Nobel Memorial Prize in Economic Science was awarded this morning to three scholars whose work on ...

This paper shows that we can normalize job and worker characteristics so that, without frictions, there exists a linear relationship between wages on the one hand and worker and job type indices on ...

This is a preview. Log in through your library . Abstract We develop a search-theoretic model of financial intermediation in an over-thecounter market and study how trading frictions affect the ...

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those ...

We build a flexible model with search frictions in three markets: credit, labor, and goods markets. We then apply this model (called CLG) to three different economies: a flexible, finance-driven ...

We show that to capture the empirical effects of uncertainty on the unemployment rate, it is crucial to study the interactions between search frictions and nominal rigidities. Our argument is guided ...

Recent studies in labour market dynamics have underscored the multifaceted nature of unemployment, where macroeconomic shocks, policy shifts and structural changes converge to influence both job ...