Macro 2 - Tepper School of Business

Lecture Notes:
Part 1: Search and Unemployment - [PDF]
Lectures:
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• Lecture 1:
  • ​We discussed McCall's model of search. For a version where the searcher does not know the distribution of outcomes (wages, prices, etc.) see Rothschild (1974)
  • ​Briefly discussed Stigler's version of search which is non-sequential. As De Los Antos, Hortacsu, and Wildenbeest - paper here - show using data on consumers' online search, consumers do go back to examined item, i.e., they do not buy the last item visited which is what sequential search model a la McCall would prescribe.​
  • ​Discussed Rotschild's critique and Diamond's paradox and started on Burdett and Judd​​
• ​Lecture 2:
  • ​Finished talking about Burdett and Judd Model. An interesting illustration of the forces in the model which can be potentially tested in the data is in the paper by Sorensen - here.
  • Started talking about the DMP model
• ​Lecture 3:
  • ​Finished the DMP model and talked about Hosios Condition
  • Started discussing evidence on distribution of wages and its determinants; Re: AKM regressions, see the paper by Abowd, Kramarz and Margolis - here.
• ​Lecture 4:
  • ​Started discussing the model by Postel-Vinay and Robin.

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Hand-written Notes from the Class
Search - [PDF]

Problem Sets:
Problem Set 1 - [PDF]; Due: April 1 2020

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