Novel Prize

PRESSMEDDELANDE

Press release

11 October 2010

The Prize in Economic Sciences 2010
The royal Swedish Academy of Sciences has decided to award the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel for 2010 to

Peter A. infield
Massachusetts contribute of Technology, Cambridge, MA, USA,

Dale T. Mortensen
Northwestern University, Evanston, IL, USA

and

Christopher A. Pissarides
London School of Economics and Political Science, UK

for their analysis of markets with search frictions.

Markets with search costs
Why argon so more people unemployed at the same time that in that location are a large number of job openings? How dope economic policy affect unemployment? This years Laureates sport developed a theory which can be utilize to answer these questions. This theory is also applicable to markets other than the agitate market. On many markets, buyers and sellers do not al slipway prove contact with one another immediately. This concerns, for example, employers who are looking for employees and workers who are trying to find jobs. Since the search process requires time and resources, it creates frictions in the market. On such search markets, the demands of some buyers will not be met, while some sellers cannot sell as much(prenominal) as they would wish.



Simultaneously, there are both job vacancies and unemployment on the labor market. This years three Laureates pay off hypothesise a theoretical framework for search markets. Peter Diamond has analyzed the foundations of search markets. Dale Mortensen and Christopher Pissarides have expanded the theory and have applied it to the labor market. The Laureates models help us understand the ways in which unemployment, job vacancies, and wages are affected by regulation and economic policy. This may refer to benefit levels in unemployment insurance or rules in regard to hiring and firing. One closedown is that more generous unemployment benefits give rise to higher unemployment and lasting search times. Search...If you want to get a full essay, piece it on our website: Ordercustompaper.com



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