Technology Adoption, Job Matching Frictions and Business Creation

Market Frictions, Technology Adoption

This paper develops an endogenous growth model with labor market matching and technology adoption. While labor market search and entry frictions lengthen technology diffusion, exogenous technology arrival may creatively destruct jobs in the short run. Such interrelationships give rise to multiple equilibria (global and local indeterminacy) under which a small autonomous technological improvemen...

Pricing and Matching with Frictions

Suppose that n buyers each want one unit and m sellers each have one or more units of a good. Sellers post prices, and then buyers choose sellers. In symmetric equilibrium, similar sellers all post one price, and buyers randomize. Hence, more or fewer buyers may arrive than a seller can accommodate. We call this frictions. We solve for prices and the endogenous matching function for finite n an...

Technology, Productivity and Job Creation: Best Policy Practices Highlights

Technological change drives long-term economic growth, productivity and improvement in living standards. At the same time, the emergence and diffusion of new ideas, products and production techniques throughout the economy entails a process of " creative destruction ". New technologies destroy jobs in some industries, especially among the low-skilled, while creating jobs which are often in diff...

Job Creation and Destruction

Banks, Credit Market Frictions, and Business Cycles

Abstract The current financial crisis highlights the need to develop DSGE models with real-financial linkages and an active banking sector. This paper proposes a fully micro-founded framework that incorporates optimizing banks, the interbank market, and the credit market into a DSGE model, and evaluates the role of banks and financial shocks in the U.S. business cycles. We assume two types of h...