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Improve Job Search IV: Add explanations, simulation, and cross-sectional analysis
Major improvements to Job Search IV (Fitted Value Function Iteration): 1. Notation and clarity: - Changed utility function from u(c, γ) to u(x, γ) to avoid confusion with unemployment compensation parameter c - Fixed random variable notation: w → W_t in model description - Changed z_i → Z_i in Monte Carlo formula - Updated Model constructor from named to positional arguments - Renamed variables in T and get_greedy: accept → v_e, reject → continuation_values - Standardized naming: h_star → h, w_star → w_bar 2. Added explanations: - Explained the explicit form of (Pv_u)(w) with derivation - Changed "From the equation above" to "Recall that we have" - Added explanation before Bellman operator about Monte Carlo integration 3. Updated plot styling: - Simplified plot to match Job Search III style - Show only continuation value h and employment value v_e - Updated labels and explanation text 4. Added Simulation section: - Implemented update_agent function with job separation logic - Added simulate_employment_path function - Created three-panel plot showing employment status, wage path, and cumulative unemployment rate - Properly handles Markov wage dynamics with separation 5. Added Cross-Sectional Analysis subsection: - Vectorized update function for parallel agent simulation - JIT-compiled simulation using lax.fori_loop - Cross-sectional unemployment histogram - Comparison of time-average vs cross-sectional unemployment rates 6. Added missing import: from functools import partial 🤖 Generated with [Claude Code](https://claude.com/claude-code) Co-Authored-By: Claude <[email protected]>
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