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Equilibrium Price Formation with a Major Player and its Mean Field Limit

Author

Listed:
  • Keisuke Kawata

    (Institute of Social Science, The University of Tokyo)

  • Yasuhiro Sato

    (Faculty of Economics, The University of Tokyo)

Abstract

We develop a simple framework to measure the impacts of an economic shock on unemployed workers' welfare quantitatively. We follow the sufficient statistics approach in consulting traditional economic models, and use a standard job search model to derive the sufficient statistics to identify the impacts. We then apply our framework to assess the impacts of the coronavirus disease 2019 (COVID-19) by using regional data of the United States and Japan, and international data. Analysis reveals the regions and countries that are severely damaged by the COVID-19.

Suggested Citation

  • Keisuke Kawata & Yasuhiro Sato, 2021. "Equilibrium Price Formation with a Major Player and its Mean Field Limit," CIRJE F-Series CIRJE-F-1163, CIRJE, Faculty of Economics, University of Tokyo.
    • Handle: RePEc:tky:fseres:2021cf1163
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    File URL: http://www.cirje.e.u-tokyo.ac.jp/research/dp/2021/2021cf1163.pdf
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    References listed on IDEAS

    as
    1. Christopher A. Pissarides & Barbara Petrongolo, 2001. "Looking into the Black Box: A Survey of the Matching Function," Journal of Economic Literature, American Economic Association, vol. 39(2), pages 390-431, June.
    2. Raj Chetty, 2009. "Sufficient Statistics for Welfare Analysis: A Bridge Between Structural and Reduced-Form Methods," Annual Review of Economics, Annual Reviews, vol. 1(1), pages 451-488, May.
    3. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
    Full references (including those not matched with items on IDEAS)

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