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We study optimal savings in continuous time with exogenous transitions between employment and unemployment as the only … dynamics of consumption and wealth between jumps can be expressed as a Fuchsian system. We derive conditions under which an … invariant joint distribution for the state variables, i.e., wealth and labour market status, exists and is unique. We also …
Persistent link: https://www.econbiz.de/10012892186
This paper provides the proofs to the analysis of a continuous time matching model with saving in Bayer and Wälde (2010a). The paper proves the results on consumption growth, provides an existence proof for optimal consumption and a detailed derivation of the Fokker-Planck equations.
Persistent link: https://www.econbiz.de/10010270451