10 12 Describe how each of the following affects steady state employment in the MortensenPissarides model of Section 10 6 (a) An increase in the job breakup rate, (b) An increase in the interest rate, r (c) An increase in the effectiveness of matching, k (d) An increase in income when unemployed, b...

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10.12. Describe how each of the following affects steady-state employment in the MortensenPissarides model of Section 10.6:...

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10.12. Describe how each of the following affects steady-state employment in the Mortensen–Pissarides model of Section 10.6:

(a) An increase in the job breakup rate, λ.

(b) An increase in the interest rate, r.

(c) An increase in the effectiveness of matching, k.

(d) An increase in income when unemployed, b.

(e) An increase in workers’ bargaining power, φ.

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Advanced Macroeconomics

ISBN: 9780073511375

4th Edition

Authors: David Romer

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Question Posted: Nov 14, 2024 06:00 AM

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10.12. Describe how each of the following affects steady-state employment in the MortensenPissarides model of Section 10.6:...

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Advanced Macroeconomics

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