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An equilibrium search model of the labor market is combined with a social network. The key features are that the workers' network transmits information about jobs and that wages and entry of firms are determined in equilibrium. In the baseline model workers are homogeneous and referrals are used to mitigate search frictions. When worker heterogeneity is(More)
Original citation: Galenianos, Manolis and Kircher, Philipp (2008) A model of money with multilateral matching. LSE has developed LSE Research Online so that users may access research output of the School. Copyright © and Moral Rights for the papers on this site are retained by the individual authors and/or other copyright owners. Users may download and/or(More)
We develop a theoretical framework to study illicit drugs markets and we estimate it using data on purchases of crack cocaine. Buyers are searching for high-quality drugs, but they determine drugs' quality (i.e., their purity) only after consuming them. Hence, sellers can rip off first-time buyers or can offer higher-quality drugs to induce buyers to(More)
A search-theoretic model of the retail market for illegal drugs is developed. The model produces testable implications regarding the effect of interdiction and enforcement on: (a) the distribution of purity offered in equilibrium; and (b) the duration of the relationships between buyers and sellers. The model is consistent with evidence from the STRIDE and(More)
Job search and migration behavior of married couples differ markedly from that of singles, which suggests that marriage, migration and labor market decisions are interrelated. Interregional moves are associated with higher wages for married men, single men, and single women, but married women do not realize much wage growth through migration and, in fact,(More)
We provide a unified directed search framework with general production and matching specifications that encompasses most of the existing literature. We prove the existence of subgame perfect Nash equilibria in pure firm strategies in a finite version of the model. We use this result to derive a more complete characterization of the equilibrium set for the(More)
We build a theoretical model to study the welfare effects and resulting policy implications of firms' market power in a frictional labor market. Our environment has two main characteristics: wages play a role in allocating labor across firms and there is a finite number of agents. We find that the decentralized equilibrium is inefficient and that the firms'(More)
Zonzilos for insightful comments and helpful suggestions. I am solely responsible for the content. Abstract With the onset of the Greek crisis, Greece was dealt a huge economic shock of historical significance, resulting in losses of quantitative and qualitative significance. This paper takes a longer-run view in assessing where Greece is at in tackling the(More)