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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Consider the steady state of the Mortensen-Picardie’s model of Section 10.6.
(a) Suppose that φ = 0. What is the wage? What does the equilibrium condition (10.70) simplify to?
(b) Suppose that φ = 1. What is the wage? What does the equilibrium condition (10.70) simplify to? Is there any value of E for which it is satisfied? What is the steady state of the model in this case?
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