Neugart, Michael (2004)
Endogenous matching functions: an agent-based computational approach.
In: Advances in Complex Systems, 7 (2)
doi: 10.1142/S0219525904000147
Article, Bibliographie
This is the latest version of this item.
Abstract
The matching function has become a popular tool in labor economics. It relates job creation (a flow variable) to two stock variables: vacancies and job searchers. In most studies the matching function is considered to be exogenous and assumed to have certain properties. The present study, instead, looks at the properties of an endogenous matching function. For this purpose we have programmed an agent-based computational labor market model with endogenous job creation and endogenous job search behavior. Our~simulations suggest that the endogenous matching technology is subject to decreasing returns to scale. The Beveridge curve reveals substitutability of job searchers and vacancies for a small range of inputs, but is flat for relatively high numbers of job searchers and vertical for relatively high numbers of vacancies. Moreover, the matching technology changes with labor market policies. This raises concerns about the validity of labor market policy evaluations conducted with flow models of the labor market that employ exogenous matching functions.
| Item Type: | Article |
|---|---|
| Erschienen: | 2004 |
| Creators: | Neugart, Michael |
| Type of entry: | Bibliographie |
| Title: | Endogenous matching functions: an agent-based computational approach |
| Language: | English |
| Date: | 2004 |
| Place of Publication: | Singapur |
| Publisher: | World Scientific |
| Journal or Publication Title: | Advances in Complex Systems |
| Volume of the journal: | 7 |
| Issue Number: | 2 |
| DOI: | 10.1142/S0219525904000147 |
| URL / URN: | https://www.worldscientific.com/toc/acs/07/02 |
| Corresponding Links: | |
| Abstract: | The matching function has become a popular tool in labor economics. It relates job creation (a flow variable) to two stock variables: vacancies and job searchers. In most studies the matching function is considered to be exogenous and assumed to have certain properties. The present study, instead, looks at the properties of an endogenous matching function. For this purpose we have programmed an agent-based computational labor market model with endogenous job creation and endogenous job search behavior. Our~simulations suggest that the endogenous matching technology is subject to decreasing returns to scale. The Beveridge curve reveals substitutability of job searchers and vacancies for a small range of inputs, but is flat for relatively high numbers of job searchers and vertical for relatively high numbers of vacancies. Moreover, the matching technology changes with labor market policies. This raises concerns about the validity of labor market policy evaluations conducted with flow models of the labor market that employ exogenous matching functions. |
| Uncontrolled Keywords: | Endogenous matching function, labor market models, agent-based computational model |
| Additional Information: | also published in: R. Leombruni and M. Richiardi (eds.), Industry and labor dynamics, the agent-based computational economics approach, Proceedings of the wild@ace\-2003 workshop, World Scientific, New Jersey, pp. 90-106,2004) |
| Divisions: | 01 Department of Law and Economics 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > Fachgebiet Finanzwissenschaft und Wirtschaftspolitik |
| Date Deposited: | 27 Mar 2012 12:46 |
| Last Modified: | 18 Jul 2024 10:12 |
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| Suche nach Titel in: | TUfind oder in Google |
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Endogenous matching functions: An agent-based computational
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