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In the context of the Diamonds-Mortensen-Pissarides models, there was a reasoning why a separation shock cannot fit business cycles. I think it was brought forward by Shimer, but I could be wrong.

Could someone summarize why separation shocks don't fit the data (besides that it is a decrease of vacations and not an increase of separations that that we observe in crises), and perhaps even reference the original paper?

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