ISSN:
1572-9974
Keywords:
method of weighted residuals
;
auxiliary model approach
;
stochastic simulations
;
rational expectations
;
nonlinear dynamics
Source:
Springer Online Journal Archives 1860-2000
Topics:
Computer Science
,
Economics
Notes:
Abstract This paper combines recent developments in methods for solving and estimatingrationalexpectations dynamic models. These developments are applied to a model oflabor-market search,where firms operate under uncertainty. We assess the ability of the structuralmodel to mimicnonlinear features found in the data. The solution to the model is obtainedusing a method ofweighted residuals. The model is then estimated using an auxiliary modeltechnique. Our resultsindicate that the simple theoretical representation of the labor market wepropose is able tomatch the overall behavior of US hours worked along various dimensions. Beyondthey show theusefulness of this combined approach to study dynamic models under rationalexpectations.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1023/A:1008758729947
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