Matching with Precautionary Savings
Per Krusell ()
No 975, 2007 Meeting Papers from Society for Economic Dynamics
We combine two setups: Bewley-Huggett-Aiyagari and Mortensen-Pissarides. Wages are given by wage bargaining, and wages will depend positively on wealth since rich workers have a better outside option. We also study the model with aggregate risk.
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More papers in 2007 Meeting Papers from Society for Economic Dynamics Society for Economic Dynamics Marina Azzimonti Department of Economics Stonybrook University 10 Nicolls Road Stonybrook NY 11790 USA. Contact information at EDIRC.
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