Consider an environment where an agent could be either, Ask an Expert

Economics

Consider an environment where an agent could be either employed E or unemployed U. Let’s normalize E + U = 1, so that E and U are interpreted as the fraction of people employed and unemployed at any given point in time, respectively. Conditional on being employed today, the probability of being fired is δ=.05; and conditional on being unemployed today, the probability of finding a job is ω=.5

a) What is the probability of staying employed? (b) What is the probability of not finding a job? (c) Suppose that we know that today (Monday) the fraction of people who are employed is 0.95, what is the fraction of people employed tomorrow (Tuesday)? (d) What is the steady state level of employment?

View complete question

Business Economics, Economics

Category:- Business Economics
Reference No.:- M91522341

Have any Question?Write your Review or question?

Related Questions in Business Economics

A brewery pulls 905 bottles of beer to sample them for

A brewery pulls 905 bottles of beer to sample them for quality control. In the past there has been a 0.12 probability that a bottle of beer is defective. Assuming this trend continues, what is the probability that fewer ...

Carefully explain how the price elasticity of demand affect

Carefully explain how the price elasticity of demand affect the revenue or profit of an organization?

The following is data a veterinarian collected from some of

The following is data a veterinarian collected from some of her clients. it is a rough estimate % of dogs weight and how long the dog lived estimate of dog's weight(xi) life span(yi) 20 ...

From a deontological ethical framework construct an

From a deontological ethical framework, construct an argument either in favour of a minimum wage or against it.

The abc movie theater has 300 seats in a typical month 25

The ABC movie theater has 300 seats. In a typical month, 25 percent of the seats are sold. The price elasticity is estimated to be -0.9. The price of a ticket is $8.00. The manager wants to increase the attendance to 30 ...

Brexita what are the economic implications provide a

"Brexit" A. What are the economic implications? Provide a credible citation. B. What possible impact could this event have on European trade? Provide a credible citation.

A college has 220 full-time employees that are currently

A college has 220 ?full-time employees that are currently covered under the? school's health care plan. The average? out-of-pocket cost for the employees on the plan is ?$1,940 with a standard deviation of ?$520. The col ...

Suppose that coca-cola is currently paying a dividend of

Suppose that Coca-Cola is currently paying a dividend of $1.75 per share, the dividend is expected to grow at a rate of 5% per year, and the rate of return investors require to buy Coca-Cola's stock is 8%. Calculate the ...

A company is to hire two new employees they have prepared a

A company is to hire two new employees. They have prepared a final list of twelve candidates, all of whom are equally qualified. Of these twelve candidates, seven are women. If the company decides to select two persons r ...

A random sample of 90 textbooks has a mean price of 100 and

A random sample of 90 textbooks has a mean price of $100 and a standard deviation of $1450. Find a 92% confidence interval for the mean price of the textbooks. Then find a 99% confidence interval and compare your results ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Economics Expert