Since f (0) represents the instantaneous probability of an unemployed worker finding a job, the expected duration

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Since f (0) represents the instantaneous probability of an unemployed worker finding a job, the expected duration of unemployment equals 1/f (0) = 1/(0q(0)). This is intuitive, since unemployed workers find it easier to locate a job (and hence expect

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Foundations Of Modern Macroeconomics

ISBN: 9781264857937

1st Edition

Authors: Ben J. Heijdra, Frederick Van Der Ploeg

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