References on banking and quantitative matching models

[pmichaillat]

Here are a few references for Matt's project:

• Monetary Policy And Bank Intermediation: A Search And Matching Approach
• The quantitative importance of technology and demand shocks for unemployment fluctuations in a shopping economy
• The government spending multiplier in the Heterogeneous Agent New Keynesian model — which unlike what the title indicates is not a New Keynesian model but a matching model

[matdehaven]

@pascalmichaillat
The second paper, "The quantitative importance of technology..." seems to address the research topic that we discussed by defining and calibrating a fully dynamic version of the "Aggregate Demand, Idle Time, and Unemployment" (2015) static models.

Do you still think I should try and write out a medium-scale dynamic version of the matching model?

[pmichaillat]

The goal in itself is not to write a medium-scale matching model. The goal is to develop a model that can help you address interesting research questions. In their case the authors developed the model to assess the contribution of demand & technology shocks to business cycles. (It is true that we already looked at this question, but they confirm the result in a more sophisticated model.)

What would be good for tomorrow is to develop a list of questions that you could answer with a medium-scale matching model. It would also be good to have an idea of other papers that tried to answer these questions with other models. I am hoping that there is a lot that you could do with such a model.