Simulating job-search models using simulating annealing

Matej Steinbacher and University of Maribor

No 296, Computing in Economics and Finance 2006 from Society for Computational Economics

Abstract: Paper deals with a simulation of job-search models using simulated annealing (SA). It is standard to test Burdett-Mortensen on-the-job search model which gives a unique solution. Unfortunately, its later generalizations especially incorporation of heterogeneous agents has overcome this unique equilibrium point for the generalized model could produce multiple equilibriums as well. In such cases many statistical methods using conventional numerical optimization algorithms could fail to find a global optimum point. Simulated annealing, instead, is very robust method capable of finding global optimum point also on very difficult non-linear functions. The method could be applied in discrete or continuous global optimization problems. Its recent modifications, i.e. Adaptive Simulated Annealing, have shortened the convergence time to converge in real time which has made the method widely applicable. Paper doesn’t give additional improvements of the simulated annealing method but applies it to the job-search models

JEL-codes: C61 J64 (search for similar items in EconPapers)
Date: 2006-07-04
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sce:scecfa:296

Access Statistics for this paper

More papers in Computing in Economics and Finance 2006 from Society for Computational Economics Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().