Commit bb06715
Add continuous distribution and volatility analysis to McCall model (#707)
This commit addresses issue #707 by extending the basic McCall model:
- Add "Continuous Offer Distribution" section
- Move continuous wage distribution from exercises to main content
- Implement lognormal wage distribution with Monte Carlo integration
- Show how reservation wage varies with c and β using contour plots
- Add "Volatility" section
- Demonstrate that reservation wage increases with volatility
- Use mean-preserving spread with lognormal distribution
- Illustrate how workers prefer more volatile distributions
- Update exercise mm_ex1 solution
- Change from discrete to continuous distribution
- Use JAX implementation with continuous wage draws
- Remove exercise mm_ex2 (now covered in main text)
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Co-Authored-By: Claude <[email protected]>1 parent f62707f commit bb06715
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