Footnote:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 15, 2019 erstellt
Description:
Most of the literature that studies frictional search-and-matching models with heterogeneous agents and random search investigates steady-state equilibria. Steady-state equilibrium requires, in particular, that the flows of agents into and out of the population of unmatched agents balance. We investigate the structure of this balance condition, taking agents' matching behavior as given. Building on the "fundamental matching lemma" for quadratic search technologies in Shimer and Smith (2000), we establish existence, uniqueness, and comparative-static properties of the solution to the balance condition for any search technology satisfying minimal regularity conditions. Implications for the existence and structure of steady-state equilibria are noted