Abele DP - Plan

q	Breuss zum Ende lesen
þ	Pissarides (Persistenzmechanismen) wiederholen und zusammenfassen
q	Pissarides: Martin’s Notizen ansehen
q	Artikel aus Finazwesen wiederholen und zusammenfassen: Windisch, Abele, Obermann, Breuss und Schäffer
q	Gibbons (Spieltheorie) und Romer (Shapiro Stiglitz) wiederholen und zusammenfassen
q	Meine Notizen durchlesen
q	Einführung in die VWL – Abele wiederholen und zusammenfassen
q	Varian wiederholen und zusammenfassen
q	Dennis Snower (Unemployment Policies) wiederholen und zusammenfassen
q	Arbeitsmarktparadoxon
q	Coe & Snower (Complementarities)
q	Neue Notizen ansehen

Pissarides: Loss of skill during unemployment & persistence of shocks

When unemployed workers loose some of their skills, the effects of an employment shock can persist because of a "thin market externality". Market becomes thin because job seekers as a whole have less human capital.

Example: Negative shock – less people hired – loss of skill – shock is over – even more unemployed than in the previous equilibrium since market remains thin and people have less human capital

Model: 2 overlapping generations of workers of size L. (1=short-term unemployed) Young workers and old previously employed produce 2 units of output each, (2=long-term u.) previously unemployed 2y, (3) unemployed zero output. Each worker stays only 2 periods, both types same wages
level of employment: X_t = 2Lq_t
probability that job meets a short-term unemployed: (1+q_t-1)/2 ..etc.& 1376, also equation for the supply of jobs J_t shows positive correlation betw/ # of jobs and y

Notes for Cobb-Douglas: a = Sucheffektivitaet der Firmen gegenueber der Sucheffektivitaet der Arbeiter, wenn a < ½ dann konkave Funktion, sonst konvexe mit 3 Gleichgewichten

Duration dependence and persistence: worker’s input into matching measured in "efficiency units of search" so that a worker who supplies c efficiency units of search receives a job offer w/ probability p = cq, therefore to maximize the profit each short-term unemployed tries to maximize cq*1-c²/2, see & 1382

Falling search intensities – cobweb cycle: adverse shock à low employment à more long term unemployed, and lower effective supply of labor à job searchers increase intensity of search à higher employment

Gibbons – game theory

These models allow economists to study the implications of rationality, self-interest and equilibrium.

1. Static games w/ complete information

two-player, simultaneous-move games, w/ no "private" information

Iterated elimination of iterated strategies -