Rationing & Bayesian Expectations with Application to the Labour Market

The first goal of the present work focuses on the need for different rationing methods of the The Global Change and Financial Transition (GFT) working group at the Potsdam Institute for Climate Impact Research (PIK): I provide a toolbox which contains a variety of rationing methods to be applied to micro-economic disequilibrium models of the lagom model family. This toolbox consists of well known rationing methods, and of rationing methods provided specifically for lagom. To ensure an easy application the toolbox is constructed in modular fashion. The second goal of the present work is to present a micro-economic labour market where heterogenous labour suppliers experience consecutive job opportunities and need to decide whether to apply for employment. The labour suppliers are heterogenous with respect to their qualifications and their beliefs about the application behaviour of their competitors. They learn simultaneously – in Bayesian fashion – about their individual perceived probability to obtain employment conditional on application (PPE) by observing each others’ application behaviour over a cycle of job opportunities.