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 WStarA.ox

This is the base model with no heterogeneity, jobs last forever. $$U = \left(\matrix{ \eta \cr PDV(z)}\right).$$ \(z\sim N(0,1).\)

 WStarA

Public fields
cg	static	current group.
eta	static	value of search .
g	static	heterogeneity group (=0 for base case).
m	static	market status (searching or done).
ps	static	\(1-\Phi(z^\star)\).
RV	static	Reservation Value solution object.
Public methods
Build	static	Create \(m\) and set \(\delta\) .
Create	static	Set up the basic model.
EUtility		Return \(E[U | z \lt z*]\) and \(E[U|z\ge z*]\) and respective probabilities.
graphit	static	Graph the values and save to WstarA.pdf.
Run	static	Create, solve and graph solution.
Uz	virtual	Return vector of utilities at cutoff z.

 WStarA

 Build

Create \(m\) and set \(\delta\) .

 cg

current group.

 Create

Set up the basic model.

 eta

value of search .

 EUtility

Return \(E[U | z \lt z*]\) and \(E[U|z\ge z*]\) and respective probabilities. Use Mill's ratio to compute truncated mean of normal.

Returns:

Array of two vectors, 2x1 and 1x2:
{ EU0 | EU1 , F(z*) ~ 1-F(z*) }

 g

heterogeneity group (=0 for base case).

 graphit

Graph the values and save to WstarA.pdf.

 m

market status (searching or done).

 ps

\(1-\Phi(z^\star)\).

 Run

Create, solve and graph solution. Called by the menu system.

 RV

Reservation Value solution object.

 Uz

Return vector of utilities at cutoff z.