
Figure 4: Analysis of the Stability for the Steady-State.
dynamic factor allocation function17
θβ =
(1 — a) (1 — β (1 — ω) λ0
t⅛A (1+C∕)
k“-1 + β(u — V) + v
— k".
λ
ʌ ʌ
Considering U = V =
ʌ
—θ, the function can be rewritten as
β 1 + C1
ka~1 —
(1 — a) (1 — β (1 — ω) ʌo
ʌ
θ)θʌ
kaθ~β+ v
λ θ. (25)
Equation (25) shows the transitional dynamics for θβ, i.e. labor market tightness
increases if
θβ >
(1 — a) (1 — β (1 — ш) λ0
Г -I k
ʌ ʌ
Cv0λ v — λ+ ɪkɑ-i
Thus, labor market tightness increases, if the realized level of labor market tightness
is greater than the equilibrium level and vice versa.
Furthermore, the following dynamic capital accumulation function can be derived
ЯЧ18
as
k= , '
1 + CjS
ka
ʌo
— (λ + e) k.
(26)
17See appendix.
18For a detailed derivation see appendix.
21
More intriguing information
1. Retirement and the Poverty of the Elderly in Portugal2. TINKERING WITH VALUATION ESTIMATES: IS THERE A FUTURE FOR WILLINGNESS TO ACCEPT MEASURES?
3. Delivering job search services in rural labour markets: the role of ICT
4. Beyond Networks? A brief response to ‘Which networks matter in education governance?’
5. The name is absent
6. The name is absent
7. PERFORMANCE PREMISES FOR HUMAN RESOURCES FROM PUBLIC HEALTH ORGANIZATIONS IN ROMANIA
8. The name is absent
9. The name is absent
10. The name is absent