Search and Matching in Macroeconomics

This paper surveys the use of search and matching models in macroeconomics. It outlines the standard model, discusses its extensions, presents alternative formulations, considers the empirical evidence, and studies applications to macroeconomic questions such as business cycles, growth, and policy. Particular attention is given to the ability of the model to account for labour market dynamics and for cyclical fluctuations in aggregate economic activitybusiness cycles; growth; macroeconomics; matching; policy; search; worker flows