Congestion Externality in Search and Matching - A Theoretical Critique of Gertler-Trigari
Tuesday, 18 June 2024, 19:58
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Edited by Alfred Anate Mayaki, Friday, 21 June 2024, 22:11
I'm thrilled to share that my review article is now available as an open-access resource, thanks to SSRN's esteemed repository. This milestone reflects the collaborative spirit of the academic community and the commitment to knowledge sharing.
The Open University Business School has been instrumental in this journey, fostering an environment where research and inquiry thrive. Thank you to Nicola Dowson from OU Library for your advice and guidance.
The main discussion related to the paper is based on this critique by a Warwick Economics Professor.
As I used a bootstrapped method and began with an identity that resembles the Pissarides/Mortensen matching function, some criticism of my paper I shall agree with concerns the relevance of the baseline 'Gertler-Trigari' model where 'congestion externality' creates some interesting rigidity.
The piece by Warwick Economics Dept's Professor, Thijs Van Rens argues there is zero 'congestion externality' in the identity I propose and in all 'GT' matching functions. I accept this claim. Most modern search and matching models operate with much of what he argues (the congestion rigidity created by firms competing for a narrow worker volume) as internalized components, usually referred to as rigidity or often as 'friction'.
Congestion Externality in Search and Matching - A Theoretical Critique of Gertler-Trigari
The main discussion related to the paper is based on this critique by a Warwick Economics Professor.
As I used a bootstrapped method and began with an identity that resembles the Pissarides/Mortensen matching function, some criticism of my paper I shall agree with concerns the relevance of the baseline 'Gertler-Trigari' model where 'congestion externality' creates some interesting rigidity.
The piece by Warwick Economics Dept's Professor, Thijs Van Rens argues there is zero 'congestion externality' in the identity I propose and in all 'GT' matching functions. I accept this claim. Most modern search and matching models operate with much of what he argues (the congestion rigidity created by firms competing for a narrow worker volume) as internalized components, usually referred to as rigidity or often as 'friction'.