View the step-by-step solution to:


This question was created from Econ 304 - Tutorial-Search and Unemployment.pdf


Hello, may you provide the answers to this question?


1- Numerical Application of the DMP theory Consider a simple economy with search unemployment. The matching function is given by
M = sigma”?
The supply curve of the workers is given by use) = x/E- Let b = [1.4, 2 = 1, k = {1.05 and o. = {15, where it: is the cost of creating a vacancy. (i) lCalculate the market tightness j. Show your calculation in detail.
(ii) What is the job-finding probability? (iii) How many vacancies are posted in the economy?

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question
Ask Expert Tutors You can ask You can ask ( soon) You can ask (will expire )
Answers in as fast as 15 minutes