Search and matching model, Managerial Economics

Search and Matching Model

It  should  be  clear  to  you  fiom  the  earlier section  that  there  are  a  variety  of models under the rubric of  search theory.  In  this section we examine o,ne  such model  at close quarters.  Peter  Howitt  originally  developed  the  model  as "Business Cycles with Costly Search and Recruiting"  in  the Quarterly Journal of Econometrics  in 1988. The exposition here is based on Blanchard and Fischer (2000). Unlike in  other  sections of this  unit,  the exposition  in  this section is necessarily more technical. It is important to follow it through, perhaps with the help of the book,  in order to get a flavour of the kind  of analysis that you will find in the literature today. The approach is descriptive and the use of equations is minimised. Going through equations, however, can add to the. understanding of  the expounded  ideas  and  you  are advised to follow the  equations-based exposition of the model in Blanchard and Fischer (2000). 

Posted Date: 10/26/2012 6:22:54 AM | Location : United States

Your posts are moderated
Related Questions
Features of Planned Economy The command economies relies exclusively on the state.  The government will decide what is made, how it is made, how much is made and how distribut

Price Elasticity at Terminal Points The price elasticity at terminal point N equals 0 means that at point N, e = 0. At terminal point M, although, price-elasticity is undefined

limitations of managerial ecomomics

Meaning of Inflation There has been a proliferation of definitions of inflation. Many of these definitions, however, embody the description of the processes by which the underl

Write the forecasting techniques There are many forecasting techniques available to person assisting the business in planning its sales. Take for instance a forecasting metho

Theories of wage determination Early theories about wages The earliest theories about wage determination were those put forward by Thomas Malthus, David Ricardo and Karl

Q. Construction of an explanatory model? Construction of a sample:   To apply multiple regression a large sample is generally essential (ideally between 2,000 to 15,000 indivi

USES OF NATIONAL INCOME FIGURES We need national income statistics to measure the size of the "National cake' of goods and services available for competing uses o

Question 1: (a) Briefly explain and distinguish between a centrally planned, laissez-faire and mixed economy. (b) According to you, which kind of economic system is most d