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Convert mccall_model_with_sep_markov.md to MyST format
Used jupytext to convert Job Search III lecture from markdown to MyST format: - Changed format_name from "markdown" to "myst" in YAML frontmatter - Converted all ```python code blocks to ```{code-cell} ipython3 directives - Removed extra "jupyter:" wrapper level in frontmatter - Updated format_version to match other lecture files (0.13) This was the only remaining lecture file in the repository using plain markdown format instead of MyST. All lectures are now consistent. 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude <[email protected]>
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lectures/mccall_model_with_sep_markov.md

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jupyter:
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display_name: Python 3 (ipykernel)
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language: python
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(mccall_with_sep_markov)=
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```
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# Job Search III: Search with Separation and Markov Wages
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## Computational Approach
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2. Substitute into the unemployed agent's Bellman equation to get:
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$$
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v_u(w) =
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The optimal policy turns out to be a reservation wage strategy: accept all wages above some threshold.
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## Code
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Can you provide an intuitive economic story behind the outcome that you see in this figure?
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## Employment Simulation
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via $P(w, \cdot)$, and positive correlation means that a high current $w$ is
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often leads a high new draw.
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## The Ergodic Property
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Often the second approach is better for our purposes, since it's easier to parallelize.
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## Cross-Sectional Analysis
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