The reservation wage under CARA and limited borrowing

Christian Bauer

A continuous-time sequential job search model with savings and CARA preferences is solved analytically without resorting to unlimited borrowing and real-valued consumption. I isolate the effects of limited borrowing and nonnegative consumption as well as risk-aversion on the reservation wage by using a system of ordinary differential equations.

MoreLess

Year of publication:	2009
Authors:	Bauer, Christian
Publisher:	München : Univ., Volkswirtschaftl. Fak.
Subject:	labor income risk \| wealth-dependent reservation wage \| borrowing limit \| Anspruchslohn \| Reservation wage \| Suchtheorie \| Search theory \| Einkommen \| Income \| Risikoaversion \| Risk aversion \| Liquiditätsbeschränkung \| Liquidity constraint \| Theorie \| Theory

freely available

Full text |

More access options

epub.ub.uni-muenchen.de

Check Google Scholar

In German libraries (KVK)

I need help

Extent:	Online-Ressource (9 S., 329 KB)
Series:	Münchener Wirtschaftswissenschaftliche Beiträge : VWL ; discussion papers. - München : Univ., ZDB-ID 2296321-2. - Vol. 2009-08
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Arbeitspapier ; Working Paper ; Graue Literatur ; Non-commercial literature
Language:	English
Notes:	CARA = constant absolute risk aversion Systemvoraussetzungen: Acrobat Reader
Other identifiers:	hdl:10419/104295 [Handle]
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; E21 - Consumption; Saving ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; J64 - Unemployment: Models, Duration, Incidence, and Job Search
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10003951742