Is the matching function Cobb-Douglas?
We study the theoretical properties that particular matching functions must satisfy to represent a frictional labor market within a general equilibrium random matching model. We analyze Cobb-Douglas, CES and other functional forms of the matching function. Our findings establish restrictions on the parameters of these matching functions to ensure that the equilibrium is interior. These restrictions provide both theoretical reasons to choose among several functional forms and model misspecification tests for empirical work.
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- Petrongolo, Barbara & Pissarides, Christopher, 2000.
"Looking Into The Black Box: A Survey Of The Matching Function,"
CEPR Discussion Papers
2409, C.E.P.R. Discussion Papers.
- Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
- Barbara Petrongolo & Christopher A. Pissarides, 2000. "Looking Into the Black Box: A Survey of the Matching Function," CEP Discussion Papers dp0470, Centre for Economic Performance, LSE.
- Barbara Petrongolo & Christopher Pissarides, 2000. "Looking into the black box: a survey of the matching function," LSE Research Online Documents on Economics 2122, London School of Economics and Political Science, LSE Library.
- Garey Ramey & Wouter J. den Haan & Joel Watson, 2000.
"Job Destruction and Propagation of Shocks,"
American Economic Review,
American Economic Association, vol. 90(3), pages 482-498, June.
- Wouter Denhaan & Garey Ramey & Joel Watson, 1997. "FORTRAN code for Job Destruction and Propagation of Shocks," QM&RBC Codes 61, Quantitative Macroeconomics & Real Business Cycles.
- Wouter J. den Haan & Garey Ramey & Joel Watson, 1997. "Job Destruction and Propagation of Shocks," NBER Working Papers 6275, National Bureau of Economic Research, Inc.
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