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A TEST BETWEEN STOCK‐FLOW MATCHING AND THE RANDOM MATCHING FUNCTION APPROACH *
Author(s) -
Coles Melvyn,
Petrongolo Barbara
Publication year - 2008
Publication title -
international economic review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.658
H-Index - 86
eISSN - 1468-2354
pISSN - 0020-6598
DOI - 10.1111/j.1468-2354.2008.00508.x
Subject(s) - matching (statistics) , econometrics , stock (firearms) , stock market , computer science , mathematics , statistics , engineering , geography , mechanical engineering , context (archaeology) , archaeology
This article tests between the standard “random matching function” approach and “stock‐flow” matching while controlling for temporal aggregation bias. Consistent with previous empirical work, the random matching function fits the matching data reasonably well. But match flows are more highly correlated with vacancy inflows than is consistent with the random matching approach. Instead the data support stock‐flow matching, where unemployed workers match directly with suitable new vacancies as such vacancies come on to the market.