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Efficiency in Search and Matching Models: A Generalized Hosios Condition
| Content Provider | Scilit |
|---|---|
| Author | Mangin, Sephorah Julien, Benoit |
| Copyright Year | 2018 |
| Description | Journal: SSRN Electronic Journal When is the level of entry of buyers or sellers efficient in markets with search and matching frictions? This paper generalizes the well-known Hosios condition for constrained efficiency to a wide range of dynamic search and matching environments where the expected match output depends on the market tightness. The generalized Hosios condition is simple and intuitive: entry is constrained efficient when buyers' surplus share equals the matching elasticity plus the surplus elasticity (i.e. the elasticity of the expected joint match surplus with respect to buyers). This condition ensures that agents are paid for their contribution to both match creation and surplus creation. In search models of the labor market, for example, the equilibrium levels of vacancy entry and unemployment are not constrained efficient unless firms are compensated for the effect of firm entry on both employment and average labor productivity. |
| Related Links | http://www.sephorahmangin.info/current_research/working_papers/GeneralizedHosiosCondition.pdf https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=3119249 |
| ISSN | 10914358 |
| e-ISSN | 15565068 |
| DOI | 10.2139/ssrn.3119249 |
| Journal | SSRN Electronic Journal |
| Language | English |
| Publisher | Elsevier BV |
| Publisher Date | 2018-01-01 |
| Access Restriction | Open |
| Subject Keyword | Journal: SSRN Electronic Journal Constrained Efficiency Search and Matching Directed Search Competitive Search Nash Bargaining Hosios Condition |
| Content Type | Text |
| Resource Type | Article |
| Subject | Public Health, Environmental and Occupational Health Psychiatry and Mental Health |
