The Development of Search and Matching Theory and Its Applications in M acroeconomics

HE Chao¹, HAN Han²

Accepted, January 2024

¹HE Chao:Liaoning University

²HAN Han: Peking University

Abstract:The search and matching theory has numerous applications in macroeconomics. In thestudy of the labor market，it becomes the canonical framework for analyzing unemployment. By offering auniform and tractable framework for studying liquidity and monetary policies，it has also been proven apowerful tool in advancing monetary theory.In this paper we introduce the history，methodology，recentdevelopment and applications of the search and matching theory，and propose future research agendasusing the framework. We hope our findings will facilitate the domestic adoption of these research method-ologies and perspectives and enhance macroeconomic research in China.

Keywords:search and matching theory; unemployment;monetary search.

JEL Classification:J64，E24，E52