Applied Microeconomics, Fall Semester 2018 (First Half)
Wednesday, Period 3 at Room 514
Instructor: Yoshimasa Shirai
Please fill in the foam at
if you are going to participate in this class.
Evaluation: submission of
solution to problem sets and a research proposal
Models of Search
Lecture 1. September 26
Why search models instead of
competitive equilibrium models?
A Model of Sequential Search [lecture
note1]
Optimal Stopping Rule I: discrete
time
McMillan and
Rothchild (1994)
Lecture 2. October 3
Optimal Stopping Rule I: discrete
time (continued)
Lecture 3. October 10
Optimal Stopping Rule II:
continuous time
Lecture 4. October 17
Price Dispersion (A Model of
Non-Sequential Search)
Diamond
(1971) and Burdett and Judd (1983).
Lecture 5. October 24
Wage Dispersion (A Model of Wage
Differentials, Firm Size, and Unemployment)
Burdett and Mortensen
(1998)
Lecture 6. October 31
Equilibrium Unemployment and
Productivity
Mortensen and
Pissarides (1994)
Midterm Exam November 7
Wrap up.
Reference
*Burdett and Judd (1983),
“Equilibrium Price Dispersion,” Econometrica,
51, 955-970.
*Burdett and Mortensen (1998),
“Wage Differentials, Employer Size, and Unemployment,” International Economic Review, 39 (2): 257-273.
DeGroot, Maurice H. (1970), Optimal Statistical Decisions, McGraw-Hill (now published in Wiley Classics Library 2004).
*Diamond, Peter (1971), “A Model
of Price Adjustment,” Journal of Economic
Theory, 3: 156-168.
Diamond, Peter (1982), “Aggregate
Demand Management in Search Equilibrium”, Journal
of Political Economy, 90 (5): 881-894.
Kiyotaki, N
and R. Wright (1993), “A Search Theoretic Approach to Monetary Economics,” American Economic Review, 83 (1), 63-77.
Lagos, R., G. Rochetau, and R.
Wright (2017), “Liquidity: A New Monetarist Perspective,” Journal of Economic Lietrature, 55 (2): 371-440.
*McMillan, J. and M. Rothchild
(1994), “Search,” Handbook of Game Theory
with Economics Applications, Vol. 2, Chapter 27, 905-927: Elsevier.
*Mortensen and Pissarides (1994),
“Job Creation and Job Destruction in a Theory of Unemployment,” Review of Economic Studies, 61 (3):
397-415.
Pisarides, Christopher (2000), Equilibrium Unemployment Theory 2nd
edition, Cambridge, MA: MIT Press.