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Suppose now you have an infinite-horizon model, = 0.9 and = 0.5. Once a person accepts a job at a wage, they remain in that
Suppose now you have an infinite-horizon model, = 0.9 and = 0.5. Once a person accepts a job at a wage, they remain in that job at that wage forever. In each period, there is a 10% chance of losing a job. Suppose that there are three possible wage offers: 4, 6, and 8
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Survey of Economics
Authors: Irvin B. Tucker
8th edition
1111989664, 978-1133713357, 1133713351, 978-1111989668
