Tehran Institute for Advanced Studies (TeIAS)

/ Consumer Good Search: Theory and Evidence

Short Course

Consumer Good Search: Theory and Evidence

December 14, 2019


Khatam University, Building No2.
Address: Mollasadra Blvd., North Shirazi St., East Daneshvar St., No.17. See location on Google map


Dr. Saman Darougheh

Researcher at the Danish Central Bank


I develop a model of the consumer good market where the individual’s search decision is consistent with balanced-growth preferences. Here, optimal search is independent of income but increases with the time endowment. I characterize the potentially multiple equilibria and test whether the model can replicate differences in observed shopping behavior across employed and unemployed individuals. Using the American Time Use Survey, I show that unemployed individuals have an almost 50% larger time endowment available for leisure and shopping. Meanwhile, they only spend 27% more time shopping than the employed. In the calibrated model, however, unemployed households will spend around twice as much time shopping as employed households. I argue that consumer-goods search models are not yet ready for business cycle analysis, and discuss ways of reconciling the model with the data.


Saman Darougheh is a researcher at the Danish Central Bank. He has recently finished his Ph.D. in economics at the University of Stockholm. His research is on macroeconomics, labor economics, and search theory. Most of his work is on occupational mobility, human capital, and unemployment fluctuations. Some work is on the relationship between labor market screening, unemployment duration, and jobless recoveries. He has also applied search theory to study price dispersion in consumer good markets.