Block recursive equilibria for stochastic models of search on the job

• 成果类型: Article
• 署名作者: Menzio, Guido; Shi, Shouyong
• 署名单位: University of Toronto; University of Pennsylvania; National Bureau of Economic Research
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2009.10.016
• 发表日期: 2010
• 页码: 1453-1494
• 关键词: Directed search; On-the-job search; Heterogeneity; aggregate fluctuations

摘要

We develop a general stochastic model of directed search on the job. Directed search allows its to focus on a Block Recursive Equilibrium (BRE.) where agents value functions, policy functions and market tightness do not depend on the distribution of workers over wages and unemployment. We formally prove existence of a BRE under various specifications of workers' preferences and contractual environments, including dynamic contracts and fixed-wage contracts. Solving a BRE is as easy as solving a representative agent model, in contrast to the analytical and computational difficulties in models of random search on the job. (C) 2009 Elsevier Inc. All rights reserved.