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Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation Author info | Abstract | Publisher info | Download info | Related research | Statistics M.Daniele Paserman
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This article estimates the degree of hyperbolic discounting in a job search model quantitatively, using data on unemployment spells and accepted wages from the NLSY. The results point to a substantial degree of hyperbolic discounting for low and medium wage workers. The structural estimates are then used to evaluate alternative policy interventions aimed at reducing unemployment. The estimated effects of a given policy can vary by up to 40%, depending on the assumed type of time discounting. Some interventions may raise the long-run utility of hyperbolic workers, and at the same time reduce unemployment duration and lower government expenditures. Copyright © The Author(s). Journal compilation © Royal Economic Society 2008.
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Article provided by Royal Economic Society in its journal The Economic Journal .
Volume (Year): 118 (2008)
Issue (Month): 531 (08)
Pages: 1418-1452
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Handle: RePEc:ecj:econjl:v:118:y:2008:i:531:p:1418-1452Contact details of provider: Web page: http://www.res.org.uk/ More information through EDIRC
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Keywords: Other versions of this item:
Paper M. Daniele Paserman, 2004.
"Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation ,"
2004 Meeting Papers
99, Society for Economic Dynamics.
[Downloadable!] Paserman, M. Daniele, 2004.
"Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation ,"
IZA Discussion Papers
997, Institute for the Study of Labor (IZA).
[Downloadable!] Paserman, Marco Daniele, 2004.
"Job Search and Hyperbolic Discounting: Structural Estimation and Policy Evaluation ,"
CEPR Discussion Papers
4396, C.E.P.R. Discussion Papers.
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
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