Bayesian Analysis of the Prototypal Search Model
AbstractBayesian analysis for a simple but widely applied dynamic programming model is obtained. The setting is the prototypal job-search model. The general case of wage and duration data, with potential censoring, is studied. The optimality condition implied by the dynamic programming setup is fully imposed. The posterior distribution reveals a 'ridge' reflecting the characteristic nonstandard nature of the inference problem. Marginal distributions and moments are obtained in a canonical parameterization after a suitable approximation. The adequacy of the approximation is easily assessed. Simulation is applied to study alternative parameterizations and prior robustness and to facilitate prior elicitations. Finally, the authors illustrate the applicability of their methods by giving posterior distributions for the elasticities of unemployment durations and reemployment wages with respect to unemployment income. The authors' analysis is easy to implement and all computations are simple to perform.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoArticle provided by American Statistical Association in its journal Journal of Business and Economic Statistics.
Volume (Year): 16 (1998)
Issue (Month): 2 (April)
Contact details of provider:
Web page: http://www.amstat.org/publications/jbes/index.cfm?fuseaction=main
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Pedersen, Peder J. & Smith, Nina, 2001. "International Migration and Migration policy in Denmark," CLS Working Papers 01-5, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
- Westergaard-Nielsen, Niels, 2001. "Danish Labour Market Policy: Is it worth it?," CLS Working Papers 01-10, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
- Gary Koop, .
"Bayesian inference in models based on equilibrium search theory,"
ESE Discussion Papers
12, Edinburgh School of Economics, University of Edinburgh.
- Koop, Gary, 2001. "Bayesian inference in models based on equilibrium search theory," Journal of Econometrics, Elsevier, vol. 102(2), pages 311-338, June.
- Ortega, Jaime, 2000.
"Job Rotation as a Mechanism for Learning,"
CLS Working Papers
00-4, University of Aarhus, Aarhus School of Business, Centre for Labour Market and Social Research.
- John W. Schindler, 2001. "Testing optimality in job search models," International Finance Discussion Papers 710, Board of Governors of the Federal Reserve System (U.S.).
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.