Comparative Statics in Dynamic Programming Models with an Application to Job Search
AbstractThis paper presents a technique for qualitative comparative statics analysis in dynamic programming models. Let the value function v be the fixed point of a contraction mapping which depends differentially on some exogenous parameter theta. Then the derivative of v with respect to theta exists and is also the fixed point of a contraction mapping. Since this derivative is the fixed point of a contraction mapping its qualitative properties can be investigated using mathematical induction. This comparative statics methodology is illustrated with an application to a model of job search.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 172.
Length: 21 pages
Date of creation: Dec 1986
Date of revision: Aug 1991
Contact details of provider:
Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
Phone: +46 8 665 4500
Fax: +46 8 665 4599
Web page: http://www.ifn.se/
More information through EDIRC
Qualitative comparative statics analysis; dynamic programming; job search model;
Other versions of this item:
- Albrecht, James W. & Holmlund, Bertil & Lang, Harald, 1991. "Comparative statics in dynamic programming models with an application to job search," Journal of Economic Dynamics and Control, Elsevier, vol. 15(4), pages 755-769, October.
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
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.:
- Sharma, Sunil, 1987. "On the existence and uniqueness of value functions in models of labor market dynamics," Economics Letters, Elsevier, vol. 24(4), pages 349-352.
- Araujo, A & Scheinkman, Jose A, 1977. "Smoothness, Comparative Dynamics, and the Turnpike Property," Econometrica, Econometric Society, vol. 45(3), pages 601-20, April.
- van den Berg, Gerard J. & van Vuuren, Aico, 2003.
"The Effect of Search Frictions on Wages,"
IZA Discussion Papers
805, Institute for the Study of Labor (IZA).
- Gérard J, Van den Berg & Aico Van Vuuren, 2003. "The effect of Search Frictions on Wages," Working Papers 2003-29, Centre de Recherche en Economie et Statistique.
- van den Berg, Gerard J. & van Vuuren, Aico, 2003. "The effect of search frictions on wages," Working Paper Series 2003:12, IFAU - Institute for Evaluation of Labour Market and Education Policy.
- Gerard J. van den Berg & Aico van Vuuren, 2002. "The Effect of Search Frictions on Wages," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 C1-2, International Conferences on Panel Data.
- van den Berg, Gerard J & van Vuuren, Aico, 2003. "The Effect of Search Frictions on Wages," CEPR Discussion Papers 3979, C.E.P.R. Discussion Papers.
- Gerard J. van den Berg & Aico van Vuuren, 2006. "The Effect of Search Frictions on Wages," Tinbergen Institute Discussion Papers 06-077/3, Tinbergen Institute.
- repec:dgr:uvatin:2006077 is not listed on IDEAS
- van Ommeren, Jos & Rietveld, Piet & Nijkamp, Peter, 1997. "Commuting: In Search of Jobs and Residences," Journal of Urban Economics, Elsevier, vol. 42(3), pages 402-421, November.
- Koning, Pierre & Berg, Gerard J. van den & Ridder, Geert, 1997. "A structural analysis of job search methods and subsequent wages," Serie Research Memoranda 0036, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Berg, G.J., 1993.
"Wage dispersion and mobility,"
Serie Research Memoranda
0016, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Jos van Ommeren & Gerard J. van den Berg & Cees Gorter, 2000.
"Estimating the Marginal Willingness to Pay for Commuting,"
Journal of Regional Science,
Wiley Blackwell, vol. 40(3), pages 541-563.
- Ommeren, Jos van & Berg, Gerard J. van den & Gorter, Cees, 1998. "Estimating the marginal willingness to pay for commuting," Serie Research Memoranda 0046, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
- Stefano DellaVigna & M. Daniele Paserman, 2005.
"Job Search and Impatience,"
Journal of Labor Economics,
University of Chicago Press, vol. 23(3), pages 527-588, July.
- Judd, Kenneth L., 1996. "Approximation, perturbation, and projection methods in economic analysis," Handbook of Computational Economics, in: H. M. Amman & D. A. Kendrick & J. Rust (ed.), Handbook of Computational Economics, edition 1, volume 1, chapter 12, pages 509-585 Elsevier.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elisabeth Gustafsson).
If references are entirely missing, you can add them using this form.