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Generalisation of the gross flows model


  • Marcin Penconek

    (University of Warsaw, Faculty of Economic Sciences)

  • Paweł Strawiński

    (University of Warsaw, Faculty of Economic Sciences)


In this study, we generalise Shimer's (2012) gross ow model in three directions using the Perron-Frobenius theorem. While the seminal work of Shimer (2012) analysed a labour market model with dynamic gross flows, three states of the economy, and stable population, our generalised model allows for considering more than three states of the economy, allows the size of the economy to change over time, and generalises the process of calculating steady states from empirical data. Our model provides a theoretical background for similar dynamic problems.

Suggested Citation

  • Marcin Penconek & Paweł Strawiński, 2022. "Generalisation of the gross flows model," Working Papers 2022-17, Faculty of Economic Sciences, University of Warsaw.
  • Handle: RePEc:war:wpaper:2022-17

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    References listed on IDEAS

    1. Xiaohong Chen & Victor Chernozhukov & Sokbae Lee & Whitney K. Newey, 2014. "Local Identification of Nonparametric and Semiparametric Models," Econometrica, Econometric Society, vol. 82(2), pages 785-809, March.
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    More about this item


    dynamic market model; Perron-Frobenius theorem; worker flows; labour market status;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs


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