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lectures/mccall_correlated.md

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In addition to what's in Anaconda, this lecture will need the following libraries:
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```{code-cell} ipython
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---
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tags: [hide-output]
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---
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:tags: [hide-output]
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!pip install quantecon
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```
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We also need to install JAX to run this lecture
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```{code-cell} ipython3
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:tags: [skip-execution]
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!pip install -U jax
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```
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## Overview
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In this lecture we solve a {doc}`McCall style job search model <mccall_model>` with persistent and
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$$
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In this express, $u$ is a utility function and $\mathbb E_z$ is expectation of next period variables given current $z$.
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In this expression, $u$ is a utility function and $\mathbb E_z$ is expectation of next period variables given current $z$.
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The variable $z$ enters as a state in the Bellman equation because its current value helps predict future wages.
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