DMP model

Abstract

In 2010 Peter Diamond, Dale Mortensen and Christopher Pissarides won the Nobel Prize in Economic Sciences for their contribution to the analysis of markets with search frictions, especially when it comes to employment. They created the DMP model, named after the first letters of their last names. Today this is an analytical instrument most used for analyzing unemployment, formation of wages and job vacancies.

Keywords

• DMP model
• (un)employment
• wages
• labor market
• research
• theory
• Peter Diamond
• Dale Mortensen
• Christopher Pissarides