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Solving the L abor Market Puzzles. Lectures 4 and 5. The indivisible hours assumptions (based on Hansen 85 and Rogerson 88). Expected utility in period t is given by: Calibration:. Quantitative assessment. Shock on public expenditures (based on Christiano and Eichenbaum 92).
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Solving the Labor Market Puzzles Lectures 4 and 5
The indivisible hours assumptions (based on Hansen 85 and Rogerson 88) Expected utility in period t is given by: Calibration:
Shock on public expenditures (based on Christiano and Eichenbaum 92) • Utility function • Calibration
Shock on preferences(based on Baxter and King 91) • Utility function • Equilibrium on the goods market
Quantitative assessment Selected second moments