Bounded rationality and unemployment dynamics
نویسندگان
چکیده
Using the bounded rationality implementation developed in Evans et al. (2021), we consider unemployment dynamics driven by aggregate productivity shocks within a McCall-type labor-search model. We find that magnifies impact effect of decline on unemployment. Boundedly rational agents are overly pessimistic about wage offers during course recession, resulting higher relative to • boundedly-rational job search Agents update over time their perceived value waiting for another offer. Reservation wages adapted recent experience. recessions. Unemployment is recessions than if were fully rational.
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ژورنال
عنوان ژورنال: Economics Letters
سال: 2022
ISSN: ['1873-7374', '0165-1765']
DOI: https://doi.org/10.1016/j.econlet.2021.110150