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Matching with Precautionary Savings

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  • Per Krusell

    (Toshihiko Mukoyama, Aysegul Sahin)

Abstract

We combine two setups: Bewley-Huggett-Aiyagari and Mortensen-Pissarides. Wages are given by wage bargaining, and wages will depend positively on wealth since rich workers have a better outside option. We also study the model with aggregate risk.

Suggested Citation

  • Per Krusell, 2007. "Matching with Precautionary Savings," 2007 Meeting Papers 975, Society for Economic Dynamics.
  • Handle: RePEc:red:sed007:975
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    Cited by:

    1. Leena Rudanko, 2008. "Aggregate and Idiosyncratic Risk in a Frictional Labor Market," Boston University - Department of Economics - Working Papers Series wp2008-009, Boston University - Department of Economics.
    2. Michael W. L. Elsby & Bart Hobijn & Ayşegül Şahin, 2013. "Unemployment Dynamics in the OECD," The Review of Economics and Statistics, MIT Press, vol. 95(2), pages 530-548, May.
    3. Francesc Obiols Homs, 2012. "Search and matching in the labor market without unemployment insurance," 2012 Meeting Papers 340, Society for Economic Dynamics.
    4. Jonathan Heathcote & Kjetil Storesletten & Giovanni L. Violante, 2009. "Quantitative Macroeconomics with Heterogeneous Households," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 319-354, May.

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