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jmbejara / comp-econ-sp19

Main Course Repository for Computational Methods in Economics (Econ 21410, Spring 2019)
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McCall Wage Values #66

Open IshaanW opened 5 years ago

IshaanW commented 5 years ago

I'm a little bit confused about the directions to modify the McCall model wages using the Q2/Q1 Markov chain. Does this mean we are supposed to only have possible wages of {10, 20, 30} or are we supposed to extend the structure of the Markov matrix as done in Q3 and use the possible wage values from the original question in class (i.e., [10, 60])?

jmbejara commented 5 years ago

Hi. Sorry, there was a typo. My intention was for it to reference another question. It should be this.

Modify the McCall Search model so that wages were instead governed by the finite state markov chain that we constructed above in question 3.

jmbejara commented 5 years ago

Use the state space defined in Question 3 (the possible wage values). The state space will be different from the one in class.