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Describing the Dynamics of Distribution in Search and Matching Models by Fokker-Planck Equations

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  • Wälde, Klaus
  • Bayer, Christian

Abstract

This paper provides the proofs to the analysis of a continuous time matching model with saving in Bayer and Wälde (2010a). The paper proves the results on consumption growth, provides an existence proof for optimal consumption and a detailed derivation of the Fokker-Planck equations.

Suggested Citation

  • Wälde, Klaus & Bayer, Christian, 2011. "Describing the Dynamics of Distribution in Search and Matching Models by Fokker-Planck Equations," VfS Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis 48736, Verein für Socialpolitik / German Economic Association.
    • Handle: RePEc:zbw:vfsc11:48736
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    References listed on IDEAS

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    Cited by:

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    2. Bolle Friedel & Otto Philipp E., 2016. "Matching as a Stochastic Process," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 236(3), pages 323-348, May.
    3. Juan Carlos Parra‐Alvarez & Olaf Posch & Mu‐Chun Wang, 2023. "Estimation of Heterogeneous Agent Models: A Likelihood Approach," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 85(2), pages 304-330, April.

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    More about this item

    Keywords

    frictional labour markets; optimal saving; incomplete markets; Poisson uncertainty; Fokker-Planck equations; general equilibrium;
    All these keywords.

    JEL classification:

    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • C65 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Miscellaneous Mathematical Tools
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General

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