Efficiency of Thin and Thick Markets

No 10815, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: In this paper, we propose a matching model to study the efficiency of thin and thick markets. Our model shows that the probabilities of matches in a thin market are significantly lower than those in a thick market. When applying our results to a job search model, it implies that, if the ratio of job candidates to job openings remains (roughly) a constant, the probability that a person can find a job is higher in a thick market than in a thin market. We apply our matching model to the U.S. academic market for new PhD economists. Consistent with the prediction of our model, a field of specialization with more job openings and more candidates has a higher probability of matching.

JEL-codes: J4 J6 (search for similar items in EconPapers)
Date: 2004-10
New Economics Papers: this item is included in nep-fin
Note: LS
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Published as Gan, Li & Li, Qi, 2016. "Efficiency of thin and thick markets," Journal of Econometrics, Elsevier, vol. 192(1), pages 40-54.

Downloads: (external link)
http://www.nber.org/papers/w10815.pdf (application/pdf)

Related works:
Journal Article: Efficiency of thin and thick markets (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:10815

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w10815

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().