Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/104295 
Year of Publication: 
2009
Series/Report no.: 
Munich Discussion Paper No. 2009-8
Publisher: 
Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät, München
Abstract: 
A continuous-time sequential job search model with savings and CARA preferences is solved analytically without resorting to unlimited borrowing and real-valued consumption. I isolate the effects of limited borrowing and nonnegative consumption as well as risk-aversion on the reservation wage by using a system of ordinary differential equations.
Subjects: 
labor income risk
wealth-dependent reservation wage
borrowing limit
JEL: 
C61
E21
D91
J64
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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