Fig. 1
Fig. 2
Fig. 3
Figure 4
Fig. 5
Parameters in Section 4_1_
| α | Parameter in production function | 0.64 |
| β | Discount factor | 0.985 |
| γ | Elasticity of wage with respect to employment rate | 1.0 |
| δ | Depreciation rate | 0.0125 |
| θ | Wage at zero unemployment | 0.35, 1.0, 1.5, or 2.0 |
| τ | Adjustment cost | 0.1 |
| s | Saving rate | 0.30 |
| N | Labour force | 110.0 |
Parameters in Section 4_2_
| α | Parameter in production function | 0.64 |
| β | Discount factor | 0.985 |
| γ | Elasticity of wage with respect to employment rate | 1.0, 2.0, 3.0, or 4.0 |
| δ | Depreciation rate | 0.0125 |
| θ | Wage at zero unemployment | 0.35 |
| τ | Adjustment cost | 0.1 |
| s | Saving rate | 0.30 |
| N | Labour force | 110.0 |
Parameters in Section 3_
| α | Parameter in production function | 0.64 |
| β | Discount factor | 0.985 |
| γ | Elasticity of wage with respect to employment rate | 1.0 |
| δ | Depreciation rate | 0.0125 |
| θ | Wage at zero unemployment | 0.35 |
| τ | Adjustment cost | 0.0 or 0.1 |
| σ | Turnover rate | 0.5 |
| s | Saving rate | 0.30 |
| N | Labour force | 110.0 |