Topic:
|
Search, Risk Aversion, and Assortative Matching |
Time&Date:
|
10:30 am-12:00 pm, December 6, 2024 (Friday)
|
Venue
|
Room 904, Teaching Complex D Building
|
Speaker:
|
Dr. Yipu Deng (HKU Business School)
|
Abstract: |
This paper studies assortative matching between heterogeneous workers and firms in a directed search model with production complementarity and risk averse workers. I show that positive assortative matching (PAM) occurs if and only if the elasticity of complementarity of the production function times that of the matching function exceeds the coefficient of the relative risk aversion of the logarithm of the utility function. This condition is particularly simple if we require PAM to hold for all matching functions: The utility gain from consuming the match output is log-supermodular.
|
Biography:
|
Xiaoming Cai is an Associate Professor of Economics at Peking University HSBC Business School. He received his Bachelor's degree from Peking University in 2008 and his PhD from Vrije Universiteit Amsterdam in 2015. His research focuses on macroeconomics and labor economics, and he has published multiple papers in leading economics journals, including the Journal of Economic Theory, the International Economic Review, and the American Economic Journal: Macroeconomics.
|