Front Matter Page
Research
Authorized for distribution by Atish Ghosh
Contents
I. Introduction
II. The Model
A. Labor Market
B. Consumers
C. Firms
1. Wage determination
D. Government
E. Stationary Equilibrium
III. Solution method
A. Fast-turnover limit
B. Approximation
1. Steady state
2. Approximation around steady state
IV. Quantitative analysis
A. Calibration
B. The effects of idiosyncratic risk
C. Optimal replacement rate
V. Conclusions
Appendices
I. Derivation of the solution to the wage bargaining
II. Fast-turnover limit
A. Derivation of the Euler condition
B. Derivation of the wage equation
III. Approximation around the steady state
A. Response to individual asset holdings
B. Response to the length of the time interval Δ
Tables
1. Effects of Idiosyncratic Risk on the Labor Market
2. Effects of Idiosyncratic Risk on Consumption and Capital
Figures
1. Approximation to Consumption Functions
2. Variations in Welfare
3. Effects of Unemployment Insurance
4. Effects of Idiosyncratic Risk
References