Quintin, Erwan (contributor); Stevens, John J. (contributor) - 2003
, in steady state,
1. w
H
<w
L
,
2. s
L
s
H
with a strict inequality if and only if s
H
> 0,
3
See Quintin and Stevens … introduces unemployment.
3
3. Q
i
(t) <Q
i
(t +1)for all t 0 and i 2fH;Lg,
4. Q
H
(t) Q
L
(t) for all t>0, with a strict … inequality if and only if s
H
> 0.
Proof. Existence and uniqueness can be established with standard arguments (see Quintin
and …