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Complete Job Search IV lecture: Add utility function and fitted VFI implementation
Updated mccall_fitted_vfi.md to implement the continuous wage offer model with CRRA utility. Key changes: - Added CRRA utility function u(c, γ) = (c^(1-γ) - 1)/(1-γ) to mathematical formulation - Updated Model class to include ρ, ν, and γ parameters - Implemented Monte Carlo integration for computing conditional expectations (Pv_u)(w) - Updated Bellman operator T() to use u(w, γ) and u(c, γ) - Added get_greedy() function for computing optimal policy - Fixed all model unpacking throughout code - Implemented compute_expectation() using w' = w^ρ * exp(ν * z) with standard normal draws - Added Exercise 3: Exploring reservation wage as function of risk aversion γ - Reformatted text: each sentence on separate line for better version control Mathematical consistency: - Code now matches theory where wages and unemployment compensation enter through utility function - Monte Carlo approximation: (Pv_u)(w) ≈ (1/N) Σ v_u(w^ρ exp(ν z_i)) - Proper JAX implementation with interpolation for fitted value function iteration 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude <[email protected]>
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