Testing Search Theory with Reemployment Bonus Experiments: Cross-Validation of Results from New Jersey and Illinois

Phillip Levine

Eastern Economic Journal, 1993, vol. 19, issue 2, 125-141

Abstract: This paper assesses the ability of a simple search-theoretic model to explain the results of two controlled reemployment bonus experiments. The availability of two independent experiments with substantially different treatments allows for a rigorous test of the model. Parameters of the model are estimated by minimizing the distance between the observed and predicted aggregate response in each experiment, then cross-validated using the observed and predicted treatment response from the other experiment. The model provides qualitative predictions that match the observed results quite well, but is unable to predict an effect as large as that observed in one of the experiments.

JEL-codes: J64 (search for similar items in EconPapers)
Date: 1993
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Citations: View citations in EconPapers (1)

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http://web.holycross.edu/RePEc/eej/Archive/Volume19/V19N2P125_141.pdf (application/pdf)

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Working Paper: Testing Search Theory with Reemployment Bonus Experiments: Cross-Validation of Results from New Jersey and Illinois (1989)
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Persistent link: https://EconPapers.repec.org/RePEc:eej:eeconj:v:19:y:1993:i:2:p:125-141

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