3.1 Endogenizing the job finding probability The job-finding rate f is not a fixed parameter but depends on how intensively firms search for workers and how intensively workers search for jobs. Here, we will focus on the worker's decision. When deciding how intensively to search for a job, the worker compares the benefit of finding a job with the benefit of staying unemployed and cost of searching for a job. In this exercise, you will find the following formula useful aq-1–q for q E (-1,1) We model the benefit of finding a job as the present discounted value of wages from the job. A worker who finds a job starts with wage wo. Future wages are discounted at interest rate R. The wage stays constant over time but the worker faces the risk of losing the job, expressed by the separation rate s 〉 0 (per period). Mathematically, you can model this 4 as future wages wt declining at a rate s (recall the calculation of present discounted value with wage growth g; instead, wages now grow at a negative rate -s). Question 3.6 Denote V the value of a job, i.e., the present discounted value of wages Compute V as a function of wo and other parameters of the model
HOW OUR WEBSITE WORKS
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of
HIGH QUALITY & PLAGIARISM FREE.
To make an Order you only need to click PLACE ORDER on top of this page and we will direct you to our Order Page at WriteDen. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Deadline range from 6 hours to 30 days.
Once done with writing your paper we will upload it to your account on our website and also forward a copy to your email.
Upon receiving your paper, review it and if any changes are needed contact us immediately. We offer unlimited revisions at no extra cost.
Is it Safe to use our services?
We never resell papers on this site. Meaning after your purchase you will get an original copy of your assignment and you have all the rights to use the paper.
Our price ranges from $8-$14 per page. If you are short of Budget, contact our Live Support for a Discount Code. All new clients are eligible for 15% off in their first Order. Our payment method is safe and secure.
Please note we do not have prewritten answers. We need some time to prepare a perfect essay for you.
Interested in purchasing an essay from us? Click PLACE ORDER on top of this page