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Recherche dirigée d’emploi, chômage et politique publique .
Author(s) -
Julien Benoît,
Kennes John,
King Ian,
Mangin Sephorah
Publication year - 2009
Publication title -
canadian journal of economics/revue canadienne d'économique
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.773
H-Index - 69
eISSN - 1540-5982
pISSN - 0008-4085
DOI - 10.1111/j.1540-5982.2009.01534.x
Subject(s) - matching (statistics) , unemployment , economics , limit (mathematics) , search theory , bargaining problem , mathematical economics , simple (philosophy) , microeconomics , econometrics , mathematical optimization , mathematics , statistics , macroeconomics , mathematical analysis , epistemology , philosophy
We examine the effects of public policy parameters in a simple directed search model of the labour market, and contrast them with those in standard random matching models with Nash bargaining. Both finite and limit versions of the directed search model are considered, and the value of the limit model as an approximation of the finite one is assessed. As with the random matching model, job creation is the key channel through which the policy parameters affect the equilibrium of the directed search model. Both comparative static effects of the policy parameters and optimal configurations are identified.