Table 3
Parameters of the distributions of shocks
Ability shocks Z
|
0.00 |
0.50 |
1.00 |
1.50 |
2.00 |
2.25 |
2.50 |
2.75 |
3.00 |
|
Distribution ψ of worker’s ability shocks | ||||||||
|
0.00 |
0.05 |
0.88 |
0.03 |
0.02 |
0.00 |
0.01 |
"ÔÔÔ |
0.01 |
|
Transition matrix Q for entrepreneur’s |
ability shocks | |||||||
|
ч |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
^^0 |
|
1 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
0.2250 |
0 |
0.7500 |
0.0250 |
0 |
0 |
0 |
0 |
0 |
|
0.0100 |
0 |
0.0750 |
0.8000 |
0.0250 |
0 |
0 |
0 |
0 |
|
0.0500 |
0 |
0 |
0.0750 |
0.8500 |
0.0250 |
0 |
0 |
0 |
|
0.0250 |
0 |
0 |
0 |
0.1000 |
0.8500 |
0.0250 |
0 |
0 |
|
0.0125 |
0 |
0 |
0 |
0 |
0.1125 |
0.8500 |
0.0250 |
0 |
|
0.0125 |
0 |
0 |
0 |
0 |
0 |
0.1125 |
0.8500 |
0.0250 |
|
0.0125 |
0 |
0 |
0 |
0 |
0 |
0 |
0.1325 |
0.8500 |
32
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